TikTok Revs Up Automotive Advertising with New Solution
TikTok is shifting gears in the automotive marketing world with the launch of its new Automotive Ads. This innovative, catalog-based solution is designed to help car manufacturers and dealerships connect with potential buyers on the platform. Recognizing the unique challenges faced by automotive advertisers, such as long buying journeys, the need for personalized marketing, and maintaining engagement across multiple platforms, TikTok developed Automotive Ads to streamline the process and drive sales.
With nearly one in three TikTok users actively in the market for a new vehicle, TikTok sees a significant opportunity for automotive brands. Ahmed Iqbal, Head of Industry for Automotive at TikTok, notes that Automotive Ads provide a way to connect national, regional, and local strategies, ensuring the right content reaches the right user at the right time.
Automotive Ads offer several key features:
- Easy Setup: Streamlined processes make launching campaigns simple.
- Dynamic Creative: Ads adapt to user preferences.
- Automotive-Specific Optimization: Models are tailored to the automotive industry.
The ads come in two formats:
- Video + Product Card: Combines engaging video content with shoppable product recommendations.
- Multi-link Carousel Card: Uses images from a catalog to showcase vehicles without requiring video content.
Two types of Automotive Ads are available:
- Inventory Ads: Designed for dealers and marketplaces, these ads promote individual vehicles (VINs).
- Model Ads: Suited for OEMs, these ads promote specific models, trims, and offers.
TikTok highlights the success early adopters have seen with Automotive Ads. For example, Peugeot UK reported a 95% improvement in cost per engaged session compared to benchmarks, with TikTok being their top-performing platform. Zoe Peacock, Head of Brand Communications & Experience at Peugeot UK, praised the collaboration with TikTok, Starcom, and Uncovered, noting the platform’s ability to optimize their primary KPI.
On the dealer side, Turnkey Marketing, a dealer marketing agency, also reported excellent results. Drake Baerrensen, CMO at Turnkey Marketing, called Inventory Ads a “game-changer,” emphasizing their cost-effectiveness and ability to drive high-quality traffic to dealership websites.
TikTok’s Automotive Ads work by leveraging catalog and website data to create a personalized user experience. Advertisers upload their vehicle catalog and set up data connections, including website lead generation events. The platform then matches users with relevant vehicles based on their preferences.
TikTok emphasizes that 37% of its users are in the market for a new or used vehicle. The platform encourages automotive advertisers to explore Automotive Ads as a solution to enhance visibility, streamline the path to purchase, and drive significant results. Interested parties can contact their TikTok sales representative or visit the Business Help Center for more information.