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TikTok Ads for eCommerce [How to Start, Types, Best Practices]

Table of Contents

tiktok logo overshadowing an ecommerce store

Running TikTok ads for eCommerce isn’t as complicated as you think, even for a first-timer. TikTok has emerged as a dominant platform catering to younger demographics. Leveraging its power can yield positive results by helping you reach your target audience if you understand the nuances of running TikTok ads.

You can engage with a highly interactive audience through ads on the social media marketing platform. However, you must know how to create an ad campaign, the ad types you can use for your brand, and best practices to enhance your ad performance.

Without further ado, let’s delve into how to get started with creating TikTok ads for eCommerce.

Is TikTok Advertising Good for eCommerce?

Yes, TikTok is perfect for eCommerce. TikTok has grown into one of the most influential social media platforms over the past few years, becoming the go-to platform for many people, especially the younger generations. 

The number of users keeps increasing. Of course, there’s data to back the numbers up. In the first quarter of 2022, TikTok became the most downloaded social media platform. The video-sharing app had more than 30 million monthly active users. It means that more and more people have realized the power of this platform and are leveraging it to their advantage.

For eCommerce businesses, they have the opportunity to push their content to millions of people who will likely engage with the ad. It is one of the reasons you should advertise on TikTok as an eCommerce business. However, your video ads must be original to make it easier for your audience to interact with your brand. With relevant hashtags, you can improve the engagement rate of your ads.

Besides the massive number of monthly active users, the unique audience is another reason advertising on TikTok will be good for your eCommerce business.

We know that the kind of audience on TikTok is mostly millennials and Gen Z, meaning the audience is a younger generation. However, the interesting part is these young lads make up 86% of TikTok users.

It doesn’t stop there; this younger generation reportedly makes up a significant percentage of the global workforce. What does that tell you? Targeting these audiences in your ad campaigns will surely be rewarding. 

Types of TikTok Ads for eCommerce

computer screen showing TikTok eCommerce ads analytics

TikTok offers different ad formats advertisers can use for their advertising campaigns. There are various ad formats eCommerce brands can leverage, and here they are:

In-Feed Ads

In-feed ads are similar to Instagram Stories ads. They are ads that appear in the user’s feed as they scroll through different content. In-feed ads could include a 60-second video and clickable links to websites or an app. 

This ad format is excellent for brands to grow their followers or capture their audience’s attention. Users revealed they find In-Feed Ads 23% more captivating and memorable than TV ads. In-feed ads also have a remarkable return on ad spend and increase sales.

Brand Takeover Ads

Brand Takeovers are ads that appear when a user first opens TikTok. They can include images, GIFs, or videos. Brand Takeovers are incredibly beneficial in increasing brand visibility. You can leverage this ad format to link to an internal or external landing page.

TopView Ads

TopView Ads are similar to Brand Takeovers but typically last longer. These are full-screen, one-minute video ads appearing on users’ For You Page (FYP) when they open TikTok. These ads are attention-grabbing, aiming to keep users glued to their screens.  

Branded Hashtag Challenges

The Hashtag Challenge is an engagement format that encourages users to create content around a specific hashtag. While this brings out the user’s innate creative abilities, it drives engagement and awareness.

In this ad format, you invite users to create content around your campaign theme or subject using your branded hashtag challenges. Hashtag challenges can make your campaign more authentic and garner views and followers.

Branded Effect Ads

Branded Effect Ads are an effective way to create awareness for your brand entertainingly. They include custom stickers, branded filters, and special effects that users can add to their videos. 

To ensure success with this ad format, you must create special effects and stickers for users to utilize for their content. Integrating these effects can increase user engagement, provide an immersive experience for users, and promote user-generated content.

You can incorporate the branded effect ads into the hashtag challenge for more exposure. You will get more visibility for your eCommerce business. 

Other types of TikTok ads your brand can leverage include:

  • Video Shopping Ads: This ad format allows you to create shoppable videos for the FYP using videos and product cards.
  • Catalog Ads: This ad type enables you to pick product images from your catalog and advertise them in a shoppable format.
  • Live Shopping Ads: Here, you can drive traffic from the FYP to your live TikTok shopping event where users can buy your products.  

Promoted TikTok Videos Vs. TikTok Ad Campaign

making TikTok videos foe eCommerce  ads

There’s been an ongoing debate about the cost-effectiveness of TikTok videos and TikTok paid ad campaigns. With advertisers seemingly on either side of the divide, we’ll take a look at which is better, but first, let’s explain what promoted TikTok videos and TikTok ad campaigns are.

Promoted TikTok videos or boosted posts allow you to promote your existing content directly from your profile without using the TikTok Ads Manager. They allow you to amplify the reach of your content without setting up an ad campaign.

A TikTok Ad Campaign involves creating and managing ads from the Ads Manager. The Ads Manager has a comprehensive suite of tools to help you set up ads and use advanced optimization and targeting options to create effective ads.

When deciding between the two options, you must consider the business goals, budget, and expertise. If you want a simple and low-cost way to increase the visibility of your content, promoted TikTok videos will suit you best. It’s also suitable if you are new to TikTok advertising.

On the other hand, the TikTok campaign is suitable for businesses looking to achieve more than visibility. It’s best if you want more conversions or traffic from a targeted audience. You can create it in the TikTok Ads Manager, which has advanced tools for more sophisticated advertising strategies.  

Both are paid ads but serve different purposes for ecommerce businesses.

How Much Do TikTok Ads for eCommerce Cost?

The cost of TikTok ads for eCommerce varies according to the campaign objective, target audience, ad formats, and campaign duration. The minimum daily budget requirement for a campaign level is $50, while the minimum daily budget for an ad group is $20.

The typical cost per click (CPC) for bidding models is between $0.10 and $1.50. Cost per impression ranges between $5 and $20, while cost per view (CPV) ranges between $0.01 and $0.05. 

How to Create a TikTok Ad Strategy for eCommerce

Now that you know the benefits of using TikTok ads for your eCommerce business and the costs, it’s time to talk about setting up an ad for your business on the social media platform. 

You need a TikTok account and an ads manager account to run paid ads on TikTok. Let’s start with how to have a business account;

  1. Download the TikTok app and sign up/log in.
  2. Navigate to the Me/Profile tab at the bottom.
  3. Tap the three dots at the top right corner.
  4. Click Manage Account, then Switch to Business Account.
  5. Follow the instructions on the screen to complete your TikTok account setup.

Now that you have your business account, let’s begin with creating your first TikTok ads campaign.

Create a TikTok Ads Manager Account

The TikTok Ads Manager Account allows you to create and manage ads for eCommerce businesses. You can create this manager ad account by visiting the sign-up page and entering information about your business. Access account set-up afterward to add a payment method.

Add a TikTok Pixel

You must be wondering what a pixel is. It’s a code line you can insert on your website. It allows marketers to share website visitor events with TikTok. Setting this up has many advantages.

Firstly, it helps you know more about your customer behavior on a business website. 

Secondly, it helps track campaign performance. Other benefits include optimizing ad delivery and building lookalike audiences.

You can create a pixel manually or by using TikTok’s integration. To set it up manually, follow the steps below:

  • Assign a name to the pixel and select ‘Manually Install Pixel Code.’
  • Copy the code to your website.
  • Track visitors’ actions with the code.
  • Test events with Pixel helper.
  • Link your pixel to your ad and select an event as the optimization goal.

With integrations:

  • Name your pixel and select ‘Automatically Install Pixel Code.’
  • Select a partner and connect your account to it. 

Create Your Product Catalog

Having a product catalog allows you to advertise your products, especially if you have multiple products to feature in your ad. Your potential customers get information about your offerings, including the price, size, and availability.

When creating your products’ catalog, use the video template and dynamic video generator tool to create custom videos for the products you want to feature in your ad. It gives your potential customers the needed awareness to make informed decisions.

Note that you can only choose this format if you have multiple products to advertise.

Start Your TikTok Campaigns

Head to TikTok Ads Manager > Campaign. Click the red ‘Create’ button to start creating your campaign.

Choose an Objective for Your Campaign

Advertisers have specific aims when running an ad. Some would want to drive more people to websites or landing pages or increase the awareness of their brand, while others would desire more conversions. What do you set to achieve with your ad content? Selecting an objective instructs TikTok to do what you want users to do when they see your ad.

Determine Your TikTok Ads Budget

How much do you want to spend on your TikTok ads? Setting a budget lets you control your overall ad cost. You can set a cost for campaigns or ad groups. You can also choose between a daily or lifetime budget.

The daily budget is how much you want to spend every day on your ads. On the other hand, a lifetime budget refers to the amount allocated during the ad campaign duration. 

TikTok allows a minimum of $20 daily for an ad spend. Then, decide the start and end date for the ads. You can also decide to run the ads on chosen days.

Create Ad Groups

Ad groups define your ad placements, creative type, target audience, bidding method, and schedule. Let’s get started with ad placements.

Ad placements mean deciding where you want your ads to appear. There’s the automatic placement and custom placement. With the automatic placement, TikTok will display your ad across all the available placements. When you select custom placement, you will decide where your ads will appear. 

In the creative type, you can toggle the Automated Creative Optimization button. The system will generate various combinations of your creative assets and choose the best-performing combinations.

In the target audience section, you can create a custom audience according to demographics, interests, gender, etc., or create lookalike audiences based on your custom audience.

For the bidding process, your optimization goal usually determines it. You can set your optimization goal to conversion, click, or reach. For conversion, your ads will be billed as cost per mile (CPM), while cost per click (CPC) is for clicks. You’ll be billed optimization cost per mile (oCPM) for reach. 

You can select how much you want to pay per click, impressions, or conversions so that TikTok delivers based on the amount. If you want more control over your budget, you can choose the Standard option to spread your money evenly throughout the scheduled campaign.

Create Your Ad

This is the final step. It’s all about selecting the most appropriate ad type for your eCommerce business. As mentioned, different TikTok ad formats on the social media marketing platform are for eCommerce brands, from branded effect ads and in-feed ads to catalog listing and video shopping ads. Select the ideal TikTok ads to finalize your campaign.

In addition, the visual must be eye-catching and engaging. TikTok is a visually-driven platform, like Instagram. Therefore, your ad must have high-quality visuals (high-res images and videos).

Furthermore, ensure your message is clear and compelling enough to get immediate action from your potential customers. Back it up with a strong call to action to encourage users to take the right step.

Best Practices for TikTok Ads in Your eCommerce Business

TikTok eCommerce ads analytics

Besides understanding how to get started with TikTok ads, you must use the best strategy consistently to get good results. Also, you’d want to ensure you’re running ads within the confines of the TikTok community guidelines. 

So, what are the best practices for your eCommerce TikTok ad campaign? Here are a few:

  • Engage with user-generated content (UGC) to encourage TikTok users to create and share content with your products. It is an effective way to boost engagement authentically.
  • Keep your ads short, engaging, and visually appealing. Ensure to capture your potential customer’s attention within the first few seconds of the ad.
  • Leverage TikTok trends. Use trending hashtags and popular sounds to increase engagement.
  • Experiment with various ad creatives to find out what works best for you. Use the TikTok analytics tool to track performance and optimize your campaign.
  • Partner with influencers and creators to promote your brand. Collaborate with them to create UGC and use it in your ads, or get them to promote your content from their handles.
  • Uniquely tell your story. TikTok loves authenticity, and you should leverage that to pique their interest. Add a compelling call to action to reinforce your marketing efforts.

Focus on Growing Your Brand While SwipeBuilder Takes Care of Operations

TikTok advertising can help empower your ecommerce brand to succeed. This blog has helped you to understand how to run ads on TikTok and follow the best practices to drive traffic, engagement, and sales.

So embrace the dynamism of TikTok to take your eCommerce business to the next level. Leverage TikTok ads campaign to get to potential TikTok users and boost sales.  

If you still find it cumbersome to use the TikTok app for advertisement, our team at SwipeBuilder can help you navigate these challenges. Learn how to use TikTok captions to keep users more engaged.

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