The short video platform TikTok is soon to become increasingly an e-commerce platform through which various companies can sell their products. With this, TikTok supposedly wants to develop new sources of income and compete more with Instagram and Facebook.
As reported by the Financial Times, TikTok is planning an aggressive expansion into online commerce. In addition, some new functions are planned, including tools with which the most popular users publish links to certain products and then automatically receive a commission on any sales.
Classic affiliate marketing, more tracking & shopping streams
Basically, it is about “affiliate marketing” of the old school, a marketing specialist is quoted in the report. Ultimately, the creators of the TikTok videos should be able to link to almost any product, even if there is no formal sponsorship by the respective provider.
In addition, TikTok wants to give branded companies the opportunity to publish catalogues of their products on the platform. It is also planned to offer shopping live streams, with which one can basically buy products with just a few clicks, just like teleshopping on the classic TV, after seeing them in a stream of a popular “star”.
In the medium term, TikTok also wants to increasingly rely on tools for advertisers that make it much easier to place advertisements and increasingly use automatic systems. So far, interested parties have usually had to place their advertising through contact with employees of the company. In addition, improved targeting of advertising, including increased user tracking, is being considered.
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The advertising industry meanwhile senses huge potential at TikTok. Above all, it is about the large proportion of young users who are extremely interesting for marketers. Around 40 percent of TikTok users allegedly do not have a Facebook account and almost two-thirds are not active on Twitter either. The industry assumes that billions of advertising “views” can be achieved for individual campaigns, whereas Facebook and Twitter usually only reach a few million.
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