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Why TikTok Shop Should Be On Your Radar

A digital hub where brands can connect with influencers and content creators, TikTok Shop is a vital tool for ecommerce and marketing individuals, and one of the key platforms in the estimated billion dollar creator economy.

Andrew Watson

With TikTok’s projected ad revenue growth hitting $25.08 billion by 2025, TikTok Shop allows brands to partner with relevant creators to drive product sales and build new audiences for their offering.

tiktok-ad-revenue-graph

Revenue estimations aside, there’s a number of other reasons why you should invest in TikTok Shop:

  1. Multi-Generational Exposure
  2. Scalable Content Growth
  3. Cost Effective
  4. Combines Ecommerce and Social Advertising
  5. Integrates with Shopify
  6. Seamless Customer Experience
  7. Incremental Audience Potential

Multi-Generational Exposure

2024 is the year that boomers turn to TikTok shopping, with the user base aging up, and moving away from a Gen-Z and Millennial majority. While the average age of active TikTok users does range from 18-35, there’s been a 57% increase in the number of 60-69 year olds using the platform since 2021 – giving advertisers access to an audience with bigger spending powers.

On the flip side, TikTok also helps brands reach the ‘first demographic’ audience (teens and young adults) which traditional digital media cannot. Co-creating content with TikTok influencers gives brands direct trading routes to these younger audiences.

Scalable Content Growth

TikTok Shop creates opportunities for advertisers to create ‘shoppable’ content for mobile devices at a scale that works for their brand. You are completely in control of your brand assets – scaling up, or down as you see fit. With over a million content creators on TikTok you could partner with 1, 10 or even 100 different creators at different levels (and price points) to deliver growth for your brand. 

As TikTok partners we can help fast-track this growth; aiding with creator discovery, idea ideation and conception – working in tandem with your in-house team.

Cost Effective

Fees are much more cost effective on TikTok Marketplace in comparison to other popular marketplace sites. Both creator content costs and digital advertising costs are coming in lower than competitor platforms – and when working with content creators, remuneration is often performance based (with fraud prevention features).

Combines Ecommerce and Social Advertising

TikTok Marketplace is so much more than just advertising – it’s an eCommerce play that dovetails with a social advertising strategy. With almost seven million uses of #tiktokmademebuyit, TikTok is a gamechanger for social commerce – changing the way users consume and interact with social media. Not only does it combine short engaging content with direct purchasing opportunities, it has shifted consumer shopping behavior across multiple generations (and demographics).

In short, TikTok allows brands to combine entertainment with eCommerce – broadening lead generation and customer acquisition opportunities.

Integrates with Shopify

TikTok Shop now has a first party integration with Shopify meaning brands have new streamlined ways of integrating TikTok Shop with their D2C site inventory, content and order flows. The TikTok App on Shopify lets you run and manage TikTok Ads and TikTok Shop directly from Shopify. Additionally, Incubeta can help you build a custom API integration which allows additional flexibility and customization.

Seamless Customer Experience

A complicated or time consuming checkout process is one of the leading contributors to abandoned carts – with 80.5% of consumers abandoning their shopping cart due to lengthy and/or negative experiences. TikTok Shop helps mitigate this, offering customers a seamless user experience across awareness, consideration and purchase. Users can add to their basket and complete transactions in the app without clicking out to an additional website (D2C or other marketplace etc.).

Incremental Audience Potential

TikTok Shop offers you two different audience avenues. Reaching existing customers and inspiring them to trade up/spend more. And reaching new customers and audiences – building brand awareness, recognition and engagement.

How To Get Started on TikTok Marketplace?

  1. We would recommend building a strong content strategy and allowing TikTok Shop six months following launch to settle – it shouldn’t be a launch and give up process after a few weeks.
  2. Ensure your D2C site is up to date and looking sharp with product information and imagery
  3. Work with Incubeta’s award-winning creative team to devise a mixture of static and video content, and build a plan to partner with TikTok creators to give a balanced set of opportunities to engage prospective customers
  4. Plot a paid media strategy to amplify creative excellence with Incubeta’s paid social team
  5. Partner with Incubeta’s Marketplaces team to build, test and learn with your TikTok Shop listings, and scope bespoke bundles and deals for this unique audience
  6. Consider developing exclusive products/colors/styles based on TikTok performance

TikTok is a great opportunity to leverage strong marketplace traffic and customer acquisition in a fully branded environment – so get in touch today and let Incubeta elevate your performance.

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