The world of automotive marketing is about to get a significant boost with the introduction of TikTok Automotive Ads, a novel solution designed to enhance vehicle promotions and turbocharge car sales effectively. This innovative tool is specifically tailored to cater to the unique challenges faced by the automotive sector in the digital landscape, where lengthy buyer journeys, highly personalized marketing strategies, and maintaining engagement across multiple digital touchpoints are just a few of the hurdles. Moreover, the shift towards online shopping and the lengthy research cycles have compelled advertisers to offer more personalized, effective, and quantifiable digital campaigns.
According to Ahmed Iqbal, Head of Automotive Industry at TikTok, “TikTok is bringing the magic of feed refinement to the car-buying experience with the introduction of our new Automotive Ads. Over the past year, we have partnered with dealerships and manufacturers to develop a new way of launching full-funnel campaigns that connect national, regional, and local strategies on TikTok. With nearly one in three TikTok users in the market for a new vehicle, Automotive Ads is the perfect way for the industry to build an experience that reaches users with the right content, the right product, at the right time.” With a straightforward setup, dynamic creatives, and sector-specific optimization models, Automotive Ads will empower automotive brands to efficiently reach their target audience, drive engagement, and maximize return on investment with minimal effort and seamless integration.
What are TikTok Automotive Ads?
TikTok Automotive Ads are catalog-based ads that connect users with car models, offers, or inventory based on their market activity and preferences. They facilitate a match between users and the most suitable car or offer for them. Users can browse the entire inventory of each brand within TikTok, either from our vehicle inventory page or through a link to the brand’s website.
Types of Automotive Ads
There are two types of Automotive Ads: Inventory Ads and Model Ads. Inventory Ads promote individual vehicles and are typically used by dealerships and marketplaces, while Model Ads promote models, trims, and offers and are commonly used by original equipment manufacturers (OEMs), or car brands.
How do Automotive Ads work?
Automotive Ads leverage the power of catalog event signals from each brand and their website to deliver a dynamic user experience based on observed preferences.
Car Brands
Global car brand Peugeot recently tested Automotive Ads and observed a 95% improvement in cost per engaged session (CPES) compared to benchmark values. TikTok Automotive Ads emerged as the top-performing platform in this test, with a significantly lower cost per conversion than other platforms, according to Zoe Peacock, Peugeot UK’s Head of Communications and Brand Experience. “Peugeot is proud to lead our social strategy once again as the first British automotive brand to use Automotive Ads,” Peacock stated. “The collaboration with our agencies, Starcom and Uncovered, and with TikTok on the launch of Automotive Ads has been a huge success, and TikTok has led the way in optimizing CPES, our primary KPI.” This success underscores TikTok’s ability to drive highly efficient engagement, solidifying its role as a key platform for Peugeot’s digital strategy.
Dealerships
Turnkey Marketing, a leading marketing agency for dealerships, also achieved remarkable results with Automotive Ads, exceeding expectations and positioning TikTok at the heart of their performance marketing, according to Drake Baerrensen, Director of Marketing. “TikTok’s automotive inventory ads are a game-changer for dealerships. They put our clients’ prized inventory in front of in-market car buyers who aren’t using other digital platforms. These ads are incredibly cost-effective and drive results. AIA is driving a crucial shift from awareness-based marketing to a more transactional approach within the TikTok ecosystem, consistently delivering more and higher-quality traffic to dealers’ websites each month,” Baerrensen noted.
Accelerating Advertising with TikTok Automotive Ads
As the automotive sector continues to adapt to the evolving digital market, TikTok’s Automotive Ads stand out as a bespoke solution designed to tackle these unique challenges. By offering a range of customizable and user-friendly advertising options, these ads not only enhance the visibility of automotive inventories but also streamline the path to purchase, making it easier for consumers to make informed decisions quickly. Key statistics include:
- 37% of TikTok users are in the market for a new or used vehicle
- 56% watch reviews and discover new vehicle models on TikTok
- 44% of users claim that creator content is important or very important in influencing their purchase or rental decision
Whether it’s a dealership looking to promote individual vehicles or an OEM aiming to increase model awareness and consideration, TikTok’s Automotive Ads Suite provides the necessary tools to achieve significant results. With innovative formats like Video + Product Card or Carousel Multi-Link Cards, and strategic features such as creative automation and advanced vehicle search, TikTok enables automotive advertisers to navigate the digital landscape with confidence and creativity.