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How to use TikTok Dynamic Product ads to step up your e-commerce

During the past year, TikTok has blossomed into the one of biggest social media networks in the world. The app skyrocketed under lockdowns and curfews with an enormous number of new users starting to find ways to entertain themselves at home.

And while there are still skeptics about the potential of the platform, TikTok was the most downloaded non-gaming app during the first quarter of 2021, proving again that the app is here to stay! 

The fact is that TikTok turned itself into a very potent and fertile advertising ground. With the big audience packed mainly with Gen Zers and Millennials, the app allowed brands to create brand love and awareness in a new way. But, TikTok now decided to capitalize on another thing that blossomed during the pandemic – e-commerce

After the introduction of a self-serve advertising platform that put small businesses in the game, partnership with Shopify, the launch of new formats like Instant Form, TikTok is adding a range of new, in-stream shopping tools that will enable brands to drive users to shop on the platform and create an increase in their revenues.

One of the new additions that really pops out is a Dynamic Product Ad and it should definitely be on your radar from now on. The number of brands advertising on TikTok is in constant growth and with a reason. Today we will discover how this new ad format can help you really boost your e-commerce potential and follow the steps of the leading businesses advertising on the platform.

So, what are Dynamic Product Ads anyway?

This is the right question to start exploring this fantastic new format. Dynamic Product Ads, or how the developers call it ”Catalog Sales“, is a format that enables the most relevant product to be automatically shown to the people that expressed interest according to their online activities. In other, simpler words, the functionality automatically retargets users with relevant products based on their activity in the brands’ app or/and websites.

Everything that this format needs in order to work is to simply upload your product line in the form of a catalogue and user events from your platforms. After the intuitive setup of your campaign, TikTok will do the rest of the job, finding the correct people for each of the products or services you are providing.

Why should you use Dynamic Product Ads?

TikTok pointed out 3 main reasons why this format is such a great asset, and we must agree!

  1. These ads are completely personalized

Instead of dropping bucks on a large-scale campaign, personalized marketing allows you to communicate with your potential customers completely based on their online behaviors. And when you show them what they want to see, as a result we get a much better experience of shopping.

  1. These ads will improve your ROI

Based on the previous one, it is expected to see transactions and improvement of ROI when you know what your customers want and have a tool to do it. Dynamic Product ads allow you exactly that.

  1. These ads save your time and money

With the retargeting possibility instead of targeting, an automated process that helps you skip creating separate ads for each promotional item, saving you time, labor costs and costs of your promotional activities.

How Dynamic Product Ads work?

With the Dynamic Products ads, there are two types of promotion for you and your businesses to achieve. If you desire user acquisition or first-time transaction then the TikTok algorithm will prospect the potential buyers with the most relevant product based on the personalized recommendation. This can be for acquiring installs, user acquisition and even for product purchases. If you aim for enhancing user activity or ROI, TikTok retargets and remarkets the users with the best-match products that might interest users based on their behaviors on the TikTokapp.

Final verdict

In its pursuit to broaden the base of advertisers on its platform, TikTok is integrating shopping into the app in various ways. Previous upgrades in these terms surely brought results, as TikTok claims, US ad business have grown more than 500% in the past year. The new ad formats are just a small step in the transition of TikTok becoming an e-commerce giant. And with the majority of TikTok’s users being relatively young, as they age up, the true expansion and growth are only at the beginning.

The lesson for today is to join the party and use the momentum that the popularity of TikTok has created. With the existing, exciting options and for even better to come, there will be opportunities for generating a ton of interest in your brand, reaching a new audiences and boosting that revenue of yours! Keep in mind that you can also rely on the knowledge and experience of specialized TikTok agencies like GrowMojo. People on our team will help you master TikTok advertising and always provide you with perfect ideas on how to be on top of the latest TikTok trends and options. Reach out to us anytime!

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