TikTok Has a New "Shop Now" Button

TikTok is the fastest-rising platform for influencers in 2020, but unlike Instagram and Facebook, it doesn’t make it so easy to monetize content. Now, the platform is aiming to change that.

TikTok’s “Shop Now” Button

Starting in April 2020, TikTok began testing a “shop now” button. The feature connects advertisers to notable influencers on the platform, displaying a prominent call-to-action button on videos featuring the brand’s products or services. The ad revenue generated then gets split between the influencer and TikTok. As of late May, the button has been rolled out to all advertisers.

Because it is still in the early phase, there are a lot of unknowns with this feature. For example, what is this revenue split going to look like? Rumors are that TikTok will keep 80 percent of the ad revenue, which sounds steep, but is in line with many other platforms.

However, results for advertisers seem to be quite positive. For example, Levi’s opted to take part in the April test run to promote their new line of customizable denim. They found that the button doubled their product views and generated double the average TikTok watchtime. This was a major win for the company given that, at the time, the majority of their physical stores were closed due to the pandemic.

This comes on the heels of TikTok launching its Creator Marketplace in late 2019. This feature allows advertisers to find influencers based on metrics like audience demographics and topics.

While not identical, TikTok’s approach is closest to the YouTube creator shared revenue model. This makes sense given the nature of the platforms, and also provides influencers a potential alternative to Instagram, which has notable struggles with retrofitting their programs to work with advertiser needs.

Should You Head Over to TikTok?

TikTok is currently experiencing significant growth. While the platform has been gaining in popularity since early 2019, lockdown has seen its use explode, with 100 million app downloads occurring just between March 20 and April 28. Dubbed the “social media sensation of lockdown,” no platform is hotter than TikTok.

At the moment, the platform still heavily leans towards brand advertising over influencer revenue. But the addition of the “shop now” button indicates that TikTok is aiming to change this. All in all, if you are considering TikTok as part of your branding, now is the time to get on board.