AMBASSADOR MARKETING

TikTok Shop Ads: How They Work & Tips to Create Effective Campaigns

Did you know that 58% of TikTok users shop directly on the platform while scrolling? Yes, that’s true; people are discovering, engaging, and buying – all within the app.

Sounds like a huge opportunity for your brand, right? Well, it definitely is!

Still, it’s important to understand that driving sales through TikTok Shop can be tricky without the right guidance. That’s where this article comes in.

We’ll share everything you need to know to create an effective campaign that converts. This includes:

• A brief overview of TikTok Shop Ads, their benefits, and types
• A detailed guide to creating TikTok Shop Ads with proven strategies
• Shop Ads specs along with popular trends and stats
• TikTok Shop Ads vs. Facebook Shop Ads vs. Instagram Shop Ads
• Challenges you may face with TikTok Shop Ads

P.S: Looking to leverage influencer marketing to advertise your TikTok Shop? inBeat.co can help. It lets you find the right creators who align with your brand. Plus, with its powerful free toolkit, you can easily evaluate the authenticity of influencers, create ad mockups, and track crucial paid media metrics. Book a free demo now!

TL;DR:

• TikTok Shop Ads allow brands to promote and sell products directly within TikTok, leveraging shoppable video formats integrated into users’ feeds.
• Key ad formats include Video Shopping Ads, Live Shopping Ads, Product Shopping Ads, Catalog Ads, In-Feed Ads, Branded Effects, Hashtag Challenges, and TopView Ads.
• Benefits of TikTok Shop Ads include a seamless in-app shopping experience, high engagement, AI-driven targeting, and improved ROI through lower acquisition costs.
• Ad specs require specific resolutions, aspect ratios, file formats, and video lengths, with TikTok recommending 9-15 second clips for best engagement.
• Creating a TikTok Shop campaign involves setting up a Seller Center account, linking TikTok accounts, creating a product catalog, setting up campaigns in Ads Manager, and monitoring performance with analytics.
• Best practices include syncing TikTok Shop with platforms like Shopify, leveraging TikTok’s Affiliate Program, and partnering with influencers for authentic, high-converting ads.
• TikTok Shop Ads vs. other platforms: TikTok excels in organic reach, impulse-driven shopping, and AI-powered discovery, while Facebook and Instagram focus more on research-based and aesthetic-driven purchases.
• Emerging trends in TikTok Shop Ads include AR-powered shopping, gamified experiences, collaborative product bundles, improved product tagging, and in-video search features.
• Challenges include ad fatigue, privacy concerns, and platform limitations, which can be mitigated by refreshing ad creatives, ensuring transparency, and staying updated on TikTok’s evolving features.
• Influencer partnerships can significantly boost campaign performance, and platforms like inBeat.co help brands find relevant creators with verified engagement metrics.

What Are TikTok Shop Ads?

TikTok Shop Ads is a shoppable ad format that helps e-commerce businesses reach TikTok’s massive audience of 2.1 billion users through engaging video content. These ads are designed to seamlessly integrate into the platform’s feed videos, which makes product discovery feel organic rather than forced.

Example:

Our sister’s agency, inBeat helped Fake Fragrances tap into TikTok Shop Ads with a UGC-driven approach.

Specifications of TikTok Shop Ads

Getting TikTok Shop Ads right means your videos should meet platform requirements. These include:

• Resolution: 540x960px, 640x640px, or 960x540px
• Aspect ratio: 9:16 (vertical), 1:1 (square), or 16:9 (horizontal)
• File format: MP4, MOV, MPEG, or AVI or 3GP
• Length: 5-60 seconds (9 to 15 seconds recommended for common video ads)
• File size: Maximum of 500MB

How TikTok Shop Ads Work?

TikTok Shop Ads let you promote and sell products directly on TikTok. These ads integrate seamlessly into users’ For You Page (FYP) and make product discovery feel natural rather than disruptive.

Here’s how they work:

1. Ad placement – TikTok Shop Ads appear as in-feed videos or live streams so people interact with products while scrolling through their feeds.
2. Shoppable features – Ads include clickable product tags, "Shop Now" buttons, and direct checkout options so you can purchase without leaving TikTok. That’s important because 71.2% of TikTok Shop users have made a purchase after encountering a product in their feed.
3. AI-powered targeting – TikTok’s algorithm optimizes ad delivery by showing products to users based on their interests, behavior, and shopping activity.
4. Seamless checkout – Users can complete purchases within the app, which reduces friction and increases conversion rates. In 2024, TikTok Shop achieved approximately $1 billion in monthly sales, which proves that its integrated shopping features are very effective.
5. Performance tracking – Advertisers can track sales, engagement, and ad performance using TikTok’s analytics tools to refine campaigns. 53% of companies achieve their ROI targets faster with dashboards that monitor their marketing expenses. That’s important because while businesses allocate over $600 billion annually to digital advertising, nearly 47% of marketers struggle to measure their ROI effectively.

Benefits of Using TikTok Shop Ads

With a clear understanding of how TikTok Shop Ads work, let’s dive into the key benefits they bring to businesses:

1. Seamless Shopping Experience

Unlike traditional social networks where users click away to shop, TikTok keeps everything in-app, from product display to checkout. This creates a smooth experience for customers with minimal friction.

2. Unlocks The Full Value of Your Catalog

TikTok Shop Ads position your products where they’ll get the most attention. Whether it's exclusive items or impulse buys, they reach dedicated customers at the perfect moment – no surprise that 55% of TikTok users make unplanned purchases while scrolling the platform.

3. High Engagement

Instead of disrupting the feed, TikTok Shop Ads feel like part of the content, so more viewers engage with it. 20% of brands on TikTok see an engagement rate of 8% or higher. That’s because the platform can turn casual scrolling into shopping events through captivating formats and entertaining videos.

4. Increased ROI

Since TikTok has a massive user base, well-structured advertising campaigns can generate more product sales with lower acquisition costs. That’s why businesses love it, as every dollar spent has the potential to bring back twice the return.

5. AI-Driven Targeting

TikTok’s AI-driven targeting ensures your ads reach the right audience when they are most likely to convert. Also, it continuously analyzes behavior to tweak campaign settings, adjust bidding strategy, and optimize ads. This increases product sales and streamlines campaign management.

Smart+ Ads represent TikTok’s most comprehensive AI-powered advertising suite, similar to what Google offers with PerformanceMax. Smart+ uses TikTok’s AI to handle all aspects of campaign management, from targeting to creative selection. With reported improvements such as a 52% increase in return on ad spend (ROAS), Smart+ is suitable for advertisers seeking high ROI across different funnel levels. - TikTok’s Commerce Advertising Arsenal: A deep dive into ad formats for brands and sellers

Types of TikTok Shop Ads

To maximize the above-mentioned benefits, you can leverage different TikTok Shop Ad formats. Some of them include:

1. Video Ads

Ever been scrolling through TikTok and suddenly stopped because a video just pulled you in?

That’s exactly what Video Shopping Ads are designed to do. They pop up inside feed videos and blend in so smoothly that users don’t realize they’re watching an ad until they see that product card inviting them to check it out.

American Eagle earned a 40% higher ROAS and 32% more efficient cost per acquisition (CPA) by leveraging this format.

2. Live Shopping Ads

Live Shopping Ads allow you to showcase products in real time during live broadcasts on TikTok.

The best part? Customers can purchase instantly without leaving the app.

P Louise, a beauty brand, made $2 million in just 12 hours using TikTok Shop Ads during a live shopping event.

@plmakeupacademy We’re making history - live right now with the best prices in plouise history, exclsuive new launches and life changing giveaways 💗 #plouise #plouisefestival ♬ original sound - PLOUISE

3. Product Shopping Ads

This format pulls product images and details straight from your Product Details Page and shows them up in the Shopping Center, Search, and even the TikTok feed. When someone clicks, they go straight to your product page.

4. Catalog Ads

Catalog Ads are like Product Shopping Ads, but they run on autopilot, so you don’t have to set things manually. Simply upload your entire product catalog, and TikTok’s advanced technology takes care of the rest. It automatically matches products to potential customers and shows them where they are already active, including:

• In-feed videos
• Shopping tab
• Search

These ads stay dynamic as out-of-stock items disappear and price changes update automatically.

5. In-Feed Ads

People swipe through feed videos, looking for content that grabs their attention. That’s why in-feed ads work so well. When done right, they feel just like regular entertaining videos but with a built-in shopping experience.

CoverGirl turned makeup tutorials into in-feed ads, with links to their products in TikTok Shop.

@covergirl

Get Easy Breezy Glowy Skin with COVERGIRL’s Clean Fresh Collection

♬ Promoted Music - covergirl

6. Branded Effects And Hashtag Challenges

Branded effects and hashtag challenges turn TikTok into an interactive shopping experience. Basically, you’re inviting people to engage via user-generated content – and that increases video views and builds trust. Pair UGC with TikTok Shop Ads, and you’re not just going viral; you’re turning that buzz into sales.

Clearly proved this right by getting 20 million video videos and 12K new followers in less than one week of their branded hashtag TikTok campaign.

7. TopView Ads

TopView Ads instantly grab attention by displaying your video full-screen for the first three seconds at the top of the For You section. Since the ad autoplays, you have the perfect opportunity to showcase TikTok Shop products. Do it through a bold visual, a catchy hook, or a compelling offer.

A Step-by-Step Guide to Creating a TikTok Shop Campaign

Now that we’ve explored the different ad types, let’s break down the steps to create a successful TikTok Shop campaign.

1. Set Up Your TikTok Shop Account

Begin by registering on the TikTok Seller Center. Choose your business type and provide the necessary details, such as your tax info and shipping details. Also, submit your documents for verification – this might take one to two days.

2. Link Your TikTok Accounts

After you're approved, connect your TikTok accounts to your TikTok Shop, and you're ready to go!

3. Create a Product Catalog For Your Shop

Use TikTok’s Catalog Manager to create a catalog by selecting your desired currency, industry, and targeting location.

You can then add multiple products to your catalog by:

• Manual addition
• Syncing your online store
• Bulk upload
• Seller center app

4. Set Up Your Campaign in TikTok Ads Manager

Head to TikTok Ads Manager, select Product Sales as your campaign objective, and choose the right ad format to suit your goals. For example, if you want to increase product discovery, go for Video Shopping Ads to showcase items in action. Similarly, when looking to drive quick customer clicks, In-Feed Ads are your best bet.

📌 Insider tip: Create ad mockups in multiple formats to optimize performance and improve engagement. Tools like the free TikTok Ad Mockup Generator by inBeat.co make it easy to design variations and run A/B tests to find the most effective format.

5. Launch and Monitor Your TikTok Shop Ad Campaign

Now that your campaign is live, it's time to keep an eye on how it’s doing. With TikTok Performance Analytics, you can track metrics like visitors, conversions, and clicks. Check in regularly and make tweaks to keep things on track and maximize your sales.

Best Practices For TikTok Shop Ad Campaigns

Once your TikTok Shop campaign is set up, the next step is optimizing it for maximum impact. We recommend following these strategies to enhance engagement, improve conversions, and maximize your return on ad spend (ROAS).

1. Integrate Shop Ads with Other E-commerce Platforms

If you're selling on multiple platforms, why treat TikTok Shopping Ads as a separate effort?

Syncing your product sources across stores like Shopify or WooCommerce in TikTok Ads Manager keeps everything in one place. As a result, you can efficiently manage inventory, automate product updates, and allow your TikTok Shop Ads to always display accurate pricing and availability.

2. Leverage Affiliate Program

You're running TikTok Shop Ads, but instead of doing all the work yourself, TikTok creators promote your products for you. Their captivating videos feel authentic, build trust, and drive product sales effortlessly.

That’s the power of TikTok’s Affiliate Program.

All you need to do is provide the creator with a unique affiliate video code, which they will include in their video description. When viewers purchase through it in TikTok Shop, the creator earns a commission.

📌 Insider tip: Experts at inBeat Agency let creators test different shopping ad formats to maximize customer clicks – if our clients agree, of course. In some campaigns, our affiliates get exclusive catalog products so they can offer something unique to their followers.

3. Partner with Influencers

The best TikTok Shop Ads don’t feel like ads at all; they feel like product recommendations from someone you already trust. That’s why working with influencers is one of the smartest ways to drive product sales.

But it’s not just about picking any creator.

The right influencers have an audience that actually wants your product, and you can find them using influencer discovery platforms like inBeat.co. With advanced filters such as language, location, engagement rate, and more, it's easier to identify creators who align with your target audience.

TikTok Shop Ads vs. Shop Ads on Other Platforms

While TikTok Shop Ads offer unique advantages, how do they compare to shop ads on other platforms?

Let’s explore that:

TikTok Shop Advertising Trends and Stats

To stay ahead in e-commerce advertising, it's crucial to keep up with the latest trends and performance metrics—here’s what’s shaping TikTok Shop Ads today.

1. Augmented Reality (AR)-Powered Shopping Features

TikTok’s Effect House and in-stream AR let users try products before buying, which boosts engagement to 200% and builds consumer confidence.

L’Oréal Paris already tapped into this strategy by allowing shoppers to preview their Colorista’s rose gold shade in real-time. The campaign garnered almost 2.8 billion views.

@lorealparis Go Bold in Rose Gold! Show us the BOLDEST you using our Colorista Rose Gold hair colour effect! #GoBoldColorista ♬ #GoBoldColorista - L’Oreal Paris

2. Gamified Shopping Experiences

Brands are using gamified shopping experiences to keep users engaged. That means they’re turning TikTok Shopping Ads into interactive challenges with multiple rewards. Try it, too; have people unlock exclusive catalog products or earn discounts through participation – it’ll make shopping feel more like entertainment than a transaction.

And that’s really important for the younger generations.

A Medium article quotes the importance of attracting TikTok’s user base, a major part (30.7%) of which is Gen-Z:

Gen Z, raised in a digital world, craves interactive content. Gamification adds fun and competition to otherwise mundane tasks, making it an ideal approach to engage this demographic. - Gamification: Secret Ingredient for Advertising Success

3. Collaborative Product Bundles

You can now team up with other brands to create collaborative product bundles, all backed by TikTok’s fulfillment network for smooth delivery – aka Fulfilled by TikTok (FBT). This strategy adds extra value for shoppers and opens the door for smart cross-promotions.

4. Improved Product Tagging

Product tagging is already transforming TikTok Shop, and it’s only getting bigger in 2025. You can now link products directly in videos, so the shoppers can tap, buy, and checkout without interruptions. This increases the chances of turning every scroll into a potential sale.

5. In-video Search Features

Ever watched a TikTok fitness influencer and wondered where she got her leggings?

With in-video search, that’s becoming a reality. TikTok is rolling out features that allow people to search by faces and visual triggers to make product discovery effortless. Whether it’s purchasing a viral outfit or booking a service, everything will be just a tap away.

Potential Challenges with TikTok Shop Ads

TikTok Shop Ads present exciting opportunities, but like any advertising campaign, they come with certain challenges, like:

• Ad fatigue: Seeing the same feed video ads repeatedly can turn engaged users into passive scrollers. With TikTok’s massive user base, the key is to keep ads fresh by testing different formats and leveraging UGCs.

What if you could get fresh UGC without the constant hassle? Specialized marketing agencies like inBeat Agency can help by connecting you with niche micro-influencers who create engaging content.

• Privacy issues: Concerns over how data is collected, stored, and used can make customers hesitant to engage, especially with brands they don’t fully trust. The solution? Transparency. Keep your privacy policies clear and comply with TikTok’s attribution windows to provide a secure shopping experience.
• Platform-specific limitations: TikTok’s shopping experiences are growing fast, but not without some hurdles. You may face catalog product issues or constraints in Ads Manager features. The key is to stay ahead. Adapt to TikTok’s platform updates and use Seller Center insights to fine-tune your e-commerce campaign content.

Find Top Influencers For Your TikTok Shop Ads with inBeat.co

TikTok Shop Ads turn TikTok’s fun, interactive content into real sales. With multiple formats, you can show off your products in a way that feels natural to users and let them shop while they scroll.

Key Takeaways:

• Incorporate product showcases into trending formats like hashtag challenges and branded effects to make it easier for users to interact with your brand.
• AI-driven targeting on TikTok ensures your ads are shown to the most relevant audience, which improves ad performance.
• Sync your TikTok Shop with platforms like Shopify or WooCommerce for streamlined inventory management.
• You can monitor and optimize your campaign using TikTok’s performance analytics.

If you want to elevate your campaign, partnering with the right influencer to promote your TikTok Shop products is a solid approach. inBeat.co helps you find authentic creators in your niche with its advanced search engine. Moreover, with an engagement rate calculator and fake follower checker, you can rest assured that your ad spend is being put to good use.

Book a free demo now!

FAQs

How much do TikTok Shop Ads cost?

TikTok requires a minimum campaign budget of $500, with daily budgets starting at $50 at the campaign level and $20 at the ad group level.

Can you run ads on TikTok Shop?

Yes, you can run ads on TikTok Shop through Ads Manager to promote products directly within the platform.

What are TikTok shopping ads?

TikTok shopping ads are promotional content that allows you to showcase your brand’s products directly within the app. This enables users to browse and purchase without leaving TikTok.

Do you have to spend $500 on TikTok ads?

Yes, TikTok requires a minimum campaign budget of $500.

Are TikTok ads worth it?

Yes, TikTok ads are effective because of the platform's massive user base, high engagement rates, and advanced targeting options. Plus, features like in-video search, creative tools, and multiple shopping ad formats make ads feel less intrusive and more engaging.