After announcing new search features last week, TikTok introduced more advertising tools today, timed to Advertising Week.
Most notably, TikTok debuted Smart+, an automation tool for targeting, bidding, and creative selection. Advertisers can enter assets, budget, and goals, and TikTok says Smart+ optimizes ad delivery to meet KPIs. Ray-Ban, who’s using Smart+ at launch, reported a nearly 50% increase in conversion rates and a 42% improvement in ROAS using Smart+.
TikTok also expanded its digital out-of-home offering, “Out of Phone,” which is a really cute name, and that displays TikTok content on digital billboards and kiosks. The new extension, “Out of Phone: Retail,” puts TikTok content in retail environments, like checkout lanes and store aisles to help retailers and brands benefit from the push to deliver on in-store retail media.
On the measurement side, TikTok also introduced Conversion Lift Studies (CLS) to help understand the impact of its campaigns. CLS compares the behavior of two groups: people exposed to TikTok ads and those not, to quantify the direct conversions or sales tied to their ads. The goal here is to offer a clearer alternative to last-click measurement, which TikTok says undervalues the company’s ad influence.
Why This Matters:
TikTok’s Smart+ is the latest addition to the growing trend of AI-powered ad performance solutions from the world’s top tech companies.
Similar to Pinterest’s Performance+, which was announced a week ago, and offerings from Google (Performance Max) and Meta (Advantage+), Smart+ uses AI in different parts of campaign management, from targeting and bidding to picking creative. This shift towards AI-driven tools reflects a broader industry trend as companies want AI not just to automate, but to optimize their advertising and improve overall performance.
A recent survey by Yahoo and Publicis Media found that two-thirds of advertisers anticipate improved performance from AI. Platforms like TikTok’s Smart+, Pinterest’s Performance+, Meta’s Advantage+, and Google’s PMax are, of course, trying to fulfill these expectations. (Google must be angry that it, too, didn’t opt for a “+” somewhere in its naming conventions, however.)
Experts React:
In TikTok’s announcement press release, Roberta Atzori, Senior Performance Marketing Manager at EssilorLuxottica, Ray-Ban’s parent company, says TikTok is “an increasingly significant component of our performance marketing strategy.” She adds that Smart+ has helped the company “automate our performance advertising” and drive “substantial improvements.”
Our Take:
Sorry to Disney+ and Paramount+, but it’s now official: the “+” sign has become the symbol for AI-powered performance features. The use of the “+” symbol by streaming services is so 2023.
