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TikTok Shop on the hunt for growth opportunities

TikTok Shop on the hunt for growth opportunities
TikTok Shop on the hunt for growth opportunities

TikTok is experimenting with its marketing strategy as customers notice sponsored TikTok Shop listings on Google Shopping. These pop-ups appear particularly when searching for beauty products sold on TikTok Shop. The short-form video hosting service’s spokesperson has confirmed to Modern Retail that it’s running adverts on Google Shopping but stopped short of revealing more details. 

TikTok Shop’s promotional strategies

In September, TikTok Shop launched its social commerce venture in the US. TikTok was ready to grab a slice of the flourishing landscape of e-commerce in America. This translated into features on the TikTok app, allowing creators and brands to make their content shoppable on the app without leaving the site. 

It allows businesses to display their products virtually, supported by TikTok’s integrated logistics and payment solutions. 

Modern Retail reports that the latest Google ad rankings indicate that the company is trying to lure third-party channels to its e-commerce platform to increase traffic. This includes search ads. 

Shopify tool: Buying Google ads for merchants

TikTok Shop is not alone in testing the water with Google Ads. Last month, Business Insider reported on Shopify’s plans to help retailers deliver better ads for specific audiences by launching a tool. This tool is set to help buy Meta and Google ads for merchants, assisting entrepreneurs to find their customers.

ALSO READ: How To Integrate Shopify With Locate2u: A Comprehensive Guide

Mike Ryan, head of e-commerce Insights at Smarter E-commerce, says: “This is a big play by Shopify as they attempt to strengthen their challenger position against Amazon in a market already crowded with other challengers like SHEIN and Temu.”

Ryan explains that Shopify will likely spend enormous money as it tries to stay visible in Google Ads. “Also, for brands advertising directly on these channels and indirectly through Shop campaigns, there could be cannibalization effects to consider.”

Ryan believes the reason for Shopify’s move is more complex than what meets the eye. “While Shopify frames their new Shop campaigns around acquiring new customers for sellers (which is true) – it’s also about acquiring & retaining Shop app users for themselves. That’s why they’re picking up the tab.”

Is TikTok Shop gunning for Amazon?

Bloomberg reports that the average US TikTok user spends 33 hours monthly on social media. This is in stark contrast to the 1.4 hours recorded spent on Amazon. The data analyzed by Data.ai sees a massive jump in online shopping on TikTok content.

According to the latest statistics, 5 million new customers bought items on TikTok during Black Friday and Cyber Monday. 

Does this mean TikTok is a threat to Amazon? Although impressive, experts suggest many shoppers still leave the platform to buy items elsewhere. With over 175 million Prime subscribers in the US, beating the brand on delivery speed will be difficult. 

About the author

Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.

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