TikTok is testing interest-based ad targeting
TikTok wants to prove it is an effective ad platform — quickly.
TikTok’s ad platform, available in beta to a select number of agencies, is testing interest-based targeting, custom audience and pixel tracking, according to four advertising executives. Those options are in addition to targeting by age, gender, location, operating system and network on the device. Sales leaders at the short-form video app have been telling agencies they plan to release this beta version of its self-serve ad platform more widely in July, sources said. (Adweek first reported plans for a biddable option and more targeting in February.)
With these updates to its ad system, TikTok is looking to attract marketers who are interested in the app but wary of its performance. In a March Digiday+ survey of 231 media buying executives, respondents ranked TikTok as the platform with the least effective audience targeting capabilities.
A TikTok spokesperson said the company is testing various features for brand partners while the main focus is on creating a good experience for larger TikTok community.
An agency executive, who had a pitch meeting with TikTok last month but has yet to buy ads on the platform, said interest-based targeting would make them more confident of ad buys on TikTok since they could simply be more precise. The move better positions TikTok as an effective buy rather than simply a “shiny object” that marketers are intrigued by due to its young audience with high engagement, the executive said.
Though, another agency executive who has chatted with TikTok said they had low expectations for the functionality — at least in its infancy. TikTok’s current capabilities won’t be as good as Facebook’s due to the newness of TikTok, the executive said.
“Interest-based targeting can be very effective, depending on how built out the platform’s targeting abilities are. Newer platforms sometimes offer interest-based targeting but have a tough time actually fulfilling on it because their data is still new,” the executive said.
TikTok representatives did not elaborate on what specific categories are offered in their meetings with new partners, sources said. One buyer said they expected the options to be similar to Snapchat’s lifestyle categories. Snapchat’s lifestyle categories, which were released in September 2016 alongside lookalike audiences and audience match, include 117 segments such as “American Football Fans,” “Movie Theater Goers” and “Online Shoppers.” These categories are based on a Snapchat user’s activity within the app, namely what types of content they spend the most time on.
TikTok’s content algorithm is currently powered by a similar recommendation system, per sources. The app is able to recognize what content is in a video, like a dog or a coffee cup, which is useful not only for recommendations in the feed but also could power the advertising system. Unlike on Snapchat, users on TikTok can like and comment on videos, which also provides signals for content recommendations similar to Facebook, Twitter and YouTube.
Even with the limited targeting options, some brands are currently buying ads on TikTok. A spokesperson from GrubHub, which was one of the early advertisers on TikTok, told Digiday last month that ad performance has continued to “meet or exceed our expectations.” Other marketers like Red Bull and Sony are testing the app with their own accounts. Publishers like ESPN and NBC News also have created their own accounts.
‘You’re not going to get it all right’: IBM CMO Michelle Peluso on managing through a crisis
As marketers manage another crisis, they are thinking about how to help their teams as well as how they should be advertising.
‘Stand for something’: As protests continue, tone-deaf influencer marketing is in the spotlight
Questions about diversity in influencer marketing, opportunism and the need for brands to get comfortable with influencers taking a stance on politics and racial issues are bubbling up now as this may be a moment of self-reflection for the influencer marketing community.
‘There isn’t a talent pipeline problem’: Confessions of a black advertising exec
In this edition of our Confessions series, in which we exchange anonymity for candor, we hear from a black media buyer who believes brands need to do more to support for Black Lives Matter and that agencies still haven't truly changed their hiring policies.
SponsoredVideo: Marketers discuss the future state of less interruptive in-stream ads
In a new video, experts from GumGum, The Martin Agency and Pinterest discuss the future of video advertising — and outline their vision for how video ads can be less disruptive.
Member ExclusiveDigiday Research: Over half of brands say they handle marketing ‘mostly’ with internal resources
Digiday’s quarterly benchmarking survey found that about 83% of marketers are managing their marketing either mostly in-house or completely in-house. That's up from the 55% of marketers six months ago who said the same.
Member Exclusive‘Our job is to sell’: Marketers, moving past coronavirus response, return to selling products
Marketers need to get back to the job at hand: Keeping the squeaky wheels of capitalism turning.