TikTok Shop Launched Advertisements on Google Shopping

Consumer Staples Author: EqualOcean News, Xiaoran Zhang Mar 05, 2024 06:49 PM (GMT+8)

TikTok Shop seeks further promotion via other platforms, in the meantime, the social media-based e-commerce industry continues to evolve.

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Recently it was reported that TikTok Shop’s advertisements has appeared within Google Shopping, showcasing beauty and skincare products primarily available on TikTok Shop. For instance, when entering keywords like "manicure" and "Dior lip oil," notable brands such as Rhode, Elf, and Tower 28 are displayed, along with some search results providing links to sellers within TikTok Shopping.

TikTok Shop, the e-commerce platform under TikTok's umbrella, has already expanded its operations to countries such as the United States, Canada, the United Kingdom, Germany, France, Italy, Spain, Japan, South Korea, Thailand, Vietnam, Malaysia, and the Philippines. The operating model of TikTok Shop includes both cross-border and local stores. Local TikTok stores require the business entity to be a local enterprise in the destination country. Conversely, cross-border TikTok stores do not have territorial requirements, supporting the entry of Chinese businesses.

Officially launched in the United States in July 2023, TikTok Shop, with less than a year of operation, is still in its developmental phase. The recent move to advertise on Google may aim to further expand its audience, recognizing that Amazon remains a dominant force in the American e-commerce landscape. Regarding TikTok Shop ads appearing on the Google search engine, Juozas Kaziukėnas, the founder and CEO of retail data analysis company Marketplace Pulse, notes that Google remains a popular shopping search engine. He emphasizes Google's advantage in allowing consumers to compare styles, features, and prices among different retailers—a competitive edge that TikTok Shop currently lacks.

Despite these efforts, some analysts suggest that TikTok Shop won't solely rely on search-based shopping for customer acquisition. Leveraging its background in short-form videos, it is able to provide users with new experiences and further refresh the e-commerce ecosystem.