TikTok Shopping Ads to Boost Lead Generation for Brands

The app shop feature quickly gained popularity among creators and brands because of its potential to drive more leads and profits. According to eMarketers, almost 6 in 10 (58%) TikTok users are using TikTok Shop, and about one-quarter (26%) use TikTok Shop to buy things.

TikTok shopping ads help businesses reach their target audience and generate massive revenue. This article outlines the process of creating a TikTok Shop and running ad campaigns. It includes step-by-step instructions and highlights the benefits.

Part 1: What are TikTok Shops?

TikTok Shop is an e-commerce feature available on the TikTok app, offering an easy way for sellers to sell products. Users can buy products directly without the need to leave the app. On TikTok shops, sellers can list their products by uploading images, descriptions, and prices. Here are the two ways to do that.

• Live Stream Shopping and Promotions: Live stream shopping offers an engaging way to showcase products in real time and encourage immediate purchases. Plus, running promotions help attract more buyers.
• Shopping Ads: With TikTok shopping ads on influencer content, the audience can easily discover products. Once they find the desired product, they can view the details via the description the seller provides and purchase it directly from the platform. 

Typically, businesses, retailers, affiliates, and even content creators use TikTok shops for promotions, selling products directly, earning a commission, or growing their sales. It helps them engage with a wider audience, make their brand visible, and advertise for the target audience, boasting direct sales.

The pricing of TikTok advertising and shops differs from other social media platforms. Here is a breakdown of it. 

• Marketplace Commission: Offer a fixed fee per order item; 2.50% - 4.00% (effective September 5, 2024: 4.50% - 10.50%)
• Transaction Fee: It is charged by payment gateways and processors; 2.00% (effective September 5, 2024: 3.50%)
• Shipping Fee Program Service Fee: Charged for sellers who use the SFP; 5.00% (effective September 5, 2024)

Benefits of TikTok Shops 

You can optimize your brand or product's growth by directly integrating your brand or product into the TikTok shops.  Here is how the following industries have benefited from these shops. 

• Apparel Industry: TikTok shops allow the apparel industry to achieve viral brand awareness and sales through visual engagement, influencer collaborations, and user-generated content.  So, customers can browse collections seamlessly for quick purchases.
• Healthcare Industry: TikTok shops allow healthcare businesses to target specific demographics effectively for more sales. To promote your healthcare brands, you can host live sessions to promote services or products, while answering real-time questions to drive engagement.
• Beauty Industry: Beauty brands can create short tutorials and encourage trend participation to promote sales. TikTok shops tap into viral challenges and hashtags, increasing brand visibility and engagement.
• Food and Beverage Industry: TikTok shops offer direct links to products, so the audience can easily navigate purchase options for featured food products, directly from the video.  With its advanced algorithm, you can also promote discoverability, reaching potential customers organically.
• Home & Lifestyle Brands: You can sell your home tours and DIY Projects by showcasing products. TikTok shop has storytelling features and a trendy format for home and lifestyle brands to connect with their audience on a personal level. It helps make products more relatable and drives consistent growth with brand awareness.

Part 2: How to Setup a TikTok Shop: A Step-by-Step Guide

Now that we know the basics of TikTok shops, let’s learn how to set up one and create ads for these shops.

1. Create a TikTok Business Account

Before you begin, download the TikTok App from the App Store or Google Play. Sign up or log into your TikTok account.

• Once done, navigate to your profile, press the Menu icon, and choose Settings and Privacy > Manage account > Switch to Business Account. Select a category that best fits your business. For instance, Retail, e-commerce, etc.

2. Verify The TikTok Shop

To set up a TikTok shop, you need to apply for one. Here is how to do it.

• Visit the TikTok Shop webpage, and click Sign Up.

• After you receive the approval email, access the TikTok Seller Center, and log into your TikTok account.

3. Set Up and Verify your TikTok Shop

After logging in or signing up you need to verify your tiktok shop.

• For verification, you need to enter details like your business or driving license, tax information, and the website URL in the respective fields.

• Once done, they will verify your information and notify you via email. Approval may take a few days.
• After getting the approval email, you can set up your tiktok shop according to your preferences
• First, give your shop a name, relevant to your products, and choose primary products and supplies.
• After this, a prompt will ask for your phone number to secure sign-up. Now, you can manage your orders and list products from relevant tabs, from the dashboard.

4. Add Products to Your TikTok Shop

In this step, you can add products to your TikTok shop.

• For that, select your relevant products by using the sidebar menu. It allows you to add products manually or in bulk.

• After adding a product, add a small product description. Once again, confirm everything and press Submit.
• Now it’s time to add your product’s details. Choose a product name that is descriptive and catchy.
• Write a clear and appealing description, highlighting features and benefits.
• Next, add pricing details for the product, including any discounts if applicable.
• Upload high-quality and visually stunning product images or videos.
• Work on the inventory to update the available stock.

5. Set Up Ads

In this step, you will use the TikTok Ad Manager for setting up an ad.

• Go to TikTok Ads Manager and log in with the same account linked to your TikTok Shop.

• Navigate to the Campaign tab and press Create. Select your campaign objectives, like traffic and conversions. Next, set your budget, and ad scheduling options.
• Create an ad group for your products. You can do this by defining your targeting criteria. It includes age, gender, location, interests, and more.
• Now, design your ad. For that, you need to choose an ad format such as In-Feed Ads or TopView. Upload your creative assets, including images and videos, and write your ad copy. Make it engaging and call attention to your products.
• Lastly, review all ad settings, preview your ad, and click Submit. Titkok will review your ad before making it live.

6. Attracting Sellers and Customers

Attracting sellers and customers is a key aspect of launching a TikTok shop. Here are a few best practices for it.

• Engage with your audience by regularly posting product demos, behind-the-scenes content, and customer testimonials on TikTok.
• Always use trending sounds and hashtags to increase visibility.
• Collaborate with Influencers who align with your brand to reach a wider audience.
• Run promotions for limited-time discounts or bundles, and highlight them in your ads.
• Use the live shopping features of TikTok. It enables you to host live shopping events to showcase your products in real time while directly interacting with the audience.
• Get user-generated content to encourage customers to create content featuring your products and share it on TikTok for more customers.

7. Monitor and Optimize

With these practices, you also need to check TikTok Analytics regularly. You can use the Service Analysis dashboard tab to track performance.

• Analyze products that are performing well, and check whether TikTok shopping ads are leading to conversions. You should adjust your marketing strategy based on algorithm data.
• Collect feedback from buyers to adjust your product offerings and marketing strategy.

Part 3: TikTok Shopping Ad Campaigns

TikTok Shopping ads allow businesses, sellers, and content creators to create engaging videos and generate more sales. Here's all you need to know about different TikTok ad formats.

1. Video Shopping Ads

Video shopping ads allow you to generate eye-catching product demos, user testimonials, or hilarious skits featuring your products for more sales.  But how can you create professional videos from URL links with a single click instantly? Virbo's link-to-video generator features can elevate your creations further, allowing you to spend less time on video production. So you can focus more on growing your business.

To make pocket-friendly video adverts instantly, you can also use the Wondershare Vibro montage maker. It creates video montages using different clips and images. Plus, you can use the available resources to adapt for various purposes, like product introductions, tutorials, and presentations.

2. Catalog Listing Ads

TikTok catalog listing ads showcase product details directly within the TikTok feed. As a business owner, you can display multiple products in a visually engaging format that helps drive users to shop easily. These ads use TikTok's targeting capabilities for enhanced visibility and sales among relevant TikTok audiences.

To make ads for product listing, smart tools like Virbo can save you time and effort. It’s URL-to-video maker converts your product pages into compelling video ads, in minutes. It also finishes these ads with appealing scripts, captions, layouts, and voiceovers. Such features are an effective way to showcase product listings from platforms like Amazon, eBay, and Shopify.

3. Live Shopping

With a live shopping feature, you can go live with your audience and showcase your product's features and specs in real time.

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Part 4: Approach TikTok Shops the Right Way

Consider these effective strategies to approach TikTok shops the right way for maximum benefits.

1. Engaging Content

The video ads on TikTok should be interactive to attract viewers. Using fun storytelling to highlight benefits and features might help bring authenticity and relevance to your content.

2. Influencer Collaborations

Partner with influencers, specific to your business niche. It expands your brand’s reach while maintaining credibility and attracting followers to your shop.

3. Utilize TikTok Ads

To achieve the desired success, it is best to invest in targeted advertising to reach audiences with specific demographics. TikTok's ad platform generates engaging ads that appear automatically in user feeds.

4. Interactive Features

Always use TikTok's interactive tools like polls and challenges to engage your audience. It encourages user participation and drives traffic to your TikTok shop.

5. Hashtag Challenges

To make the most of your TikTok shop, switch to branded hashtag challenges. It offers brand awareness, and enhanced visibility, and drives engagement.

Wrapping Up

TikTok shops can help you boost your sales, but you need to optimize your shops with the right practices. You can do this by consistently uploading eye-catching content that explains your product's features. Also, use trends and popular sounds to capture the audience's attention. 

Most importantly, always use TikTok's interactive features, such as polls and Q&A sessions to encourage customer interaction. Lastly, regularly analyze algorithms to learn which TikTok shop ads give you more sales and drive engagement.

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