TikTok’s new auto ads—what car brands and dealerships should know

TikTok is going after more auto brands and car dealerships with a new performance ad format that displays more product details and links to shop. On Wednesday, TikTok announced it would roll out Automative Ads to all brands, after testing the format with carmakers and dealers, including Mercedes-Benz and Peugeot. The ads are similar to other performance-based formats, which provide product listings and links to sites for consumers to shop, but these are geared for the auto industry. In one example, TikTok showed how Mercedes-Benz created an ad featuring a sedan with a prompt to “check availability,” a catalog page with multiple vehicles, and links to Mercedes’ website where consumers could shop pre-owned vehicles. Meanwhile, another ad promoted a local Dodge dealership in Towbin, Nevada, with links to “shop now.” NextGen Marketing Summit Join us for a crash course on Gen Z, DTC marketing and the creator economy Register today “Dealers and manufacturers have the ability to launch full-tier campaigns that connect national, regional and local strategies on TikTok,” Ahmed Iqbal, TikTok’s head of industry for automotive, said in the announcement. There were two types of auto ads in the announcement—“inventory ads” for the dealerships and “model ads” for the car brands. Meanwhile, TikTok said that 37% of its users over the age of 18 are looking for new and used cars. TikTok’s auto ads show the platform continues to go after the car brands and develop new ad types, even as the app deals with its political issues in the U.S. Last month, a new U.S. law forced TikTok’s owner China-based ByteDance to explore a sale of the platform. TikTok even shut down for almost 14 hours, before restoring its services after receiving permission from the new Trump administration. The uncertainty around TikTok’s future came at a crucial period for advertising, just ahead of the Super Bowl, when major brands plan their social media spending to complement their national campaigns. Last month, TikTok also has had a major departure from its ad sales team when Sameer Singh left as head of ad sales in North America. Still, TikTok has started to stabilize in recent weeks. Last week, major platforms Apple and Google restored TikTok in their app stores. The platforms prohibited new downloads of TikTok, since the bill has provisions that could penalize service providers for supporting the app. TikTok has had to assure partners and advertisers that doing business with the company is permitted, according to advertising leaders who have spoken with Ad Age on condition of anonymity. As for automakers, like many advertisers, they have been interested in TikTok’s unique ability to reach young audiences and its cultural influence. Late last year, Kia launched a campaign it called the “Kia TikTok Car Creator Configurator,” working with popular influencers on the platform to promote its K4. TikTok users could design their own K4 models. TikTok said its latest auto ad format led to improved “cost per engaged sessions,” which is a metric that tracks how much advertisers pay for ads that drive the most user interest. TikTok also said the ads led to 40% higher engagement rates from consumers and 78% higher click through rates, which tracks how often consumers tap into the ads. The auto ads also could help automakers combine their usual major brand advertising with the performance side of marketing. The inventory ads are “driving a crucial shift from awareness-based marketing to a more transactional approach within the TikTok ecosystem,” Drake Baerresen, VP sales and chief marketing officer at auto advertising service TurnKey Marketing, said in the announcement.

TikTok’s new auto ads—what car brands and dealerships should know

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