TikTok’s uncertain future isn’t stopping it from rolling out new ad products off the assembly line, with the platform unveiling Automotive Ads Wednesday.
The company described its Automotive Ads as a performance ad solution that lets advertisers target high-intent users with their available inventory of vehicles.
“With TikTok’s new Automotive Ads, dealers and manufacturers have the ability to launch full-tier campaigns that connect national, regional, and local strategies on TikTok,” said TikTok head of industry for automotive Ahmed Iqbal in a statement.
TikTok said brands in the test group saw cost per acquisition drop by 40%, click-through rates jump up 78%, and engagement rates rise by 40%.
“Our collaboration with Starcom, Uncovered, and TikTok in launching Automotive Ads has been highly successful, and meant TikTok was the leading platform in optimizing cost per engaged session, our primary key performance indicator,” Peugeot UK head of brand communications and experience Zoe Peacock said in a statement.
For Peugeot, the campaign drove a 95% improvement in CPES compared to initial conservative benchmarks, and at a significantly lower cost than other platforms, she added.
Automotive Ads are available in two creative formats. Video + Product Card lets advertisers combine video with personalized shoppable product recommendations from their catalog. And Multi-Link Carousel Card lets brands pull images from their catalog instead.
There are also two types of Automotive Ads. Inventory Ads are designed for use by dealers and marketplaces to promote individual vehicles, while Model Ads are typically used by original equipment manufacturers to promote models, offers, and trims.
TikTok said brands using Automotive Ads can set their feed and budget and drive leads with minimal effort on their part, adding that its model locates the ideal audience and matches them with vehicles that meet their preferences.
The platform added that its catalog manager lets advertisers using Automotive Ads perform tasks such as creating product sets, diagnosing pixel matching, and managing their feed schedule.
When a TikTok user is served an Automotive Ad, they will see eligible items from the advertiser’s catalog. Clicking on an item takes them to its mapped URL destination. Should they continue swiping through items, they will eventually land on a TikTok Instant Page or URL, where they can browse the brand’s full catalog without leaving the TikTok application.
