MGR eCommerce Edge Weekly | October 28, 2020
Top News This Week
Shopify x TikTok: What it Means for Brands
On Tuesday, TikTok and Shopify announced that Shopify merchants can now create and run TikTok campaigns from directly within the Shopify dashboard, thanks to a new TikTok channel within the Shopify app store.
Any hesitation brands once had towards advertising on TikTok is now gone, threats of a US ban have gone away and the opportunity of a new social advertising platform has emerged.
Brands are in a constant search to expand their advertising beyond the Facebook ecosystem, especially as costs continue to increase and many performance metrics are not what they once were. TikTok provides a new alternative with a massive audience, especially when it comes to the coveted 16 – 25 age range. Now with the new Shopify integration, it makes it even easier for brands to get started.
The biggest drawback at the moment is that TikTok’s tracking is not as sophisticated as Facebook’s. For example, TikTok does not currently have multi-day purchasing windows, which means if a customer doesn’t buy directly off of the first click, but buys a day later, TikTok is not able to track this in the same way Facebook can. This limited tracking means limited audience building as well. The plus side however, is that currently TikTok CPMs are 5x or more cheaper than Facebook for ‘top of funnel’ advertising, making it a phenomenal option for brand discovery.