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TikTok Announces In-App Purchases: What This Means For Influencers

By: Jackson Hayes


As TikTok continues to dominate the social media scene, it is working to establish a stronger monetization process to keep its top creators from moving to other established platforms that offer more profitable opportunities. While TikTok was crowned the most downloaded non-gaming app for May 2021 with more than 80 million installs, its advertising system is not quite up to par with its competitors like YouTube, Facebook and Instagram.


Thus, TikTok is looking to integrate new tools to facilitate more eCommerce opportunities and maximize its revenue on the advertising front. According to a recent report from the Financial Times, TikTok has briefed advertisers on three new eCommerce additions coming to the app in the near future. The first is a tool that lets its most popular users share links to products and automatically earn commission on any sales. Next, the ability for brands to showcase catalogs of their products on the platform. Lastly, livestream shopping where users can purchase goods with only a few taps after seeing the product showcased by TikTok stars.


So, what does this mean for brands and influencers? Well, TikTok’s content-based algorithm, which perfectly delivers content based on user interests, will allow brands to directly advertise to users who have shown interest in products like the ones they are advertising -- unlike their competitors Instagram and Facebook, where users really only see content from the people they follow. On the influencer side, creators will have the ability to incorporate advertisements into their daily content, integrating it easier into their own personal brand. Moreover, the new eCommerce features will make it easier for influencers to recommend their products to their fanbase. Influencers currently have to direct their followers to a link in their bio or respond to comments individually, but with the addition of the new features, they will be able to easily showcase their products in just a few clicks, making brand collaborations far more successful.


These eCommerce additions to TikTok have the potential to provide a revolutionary gateway to a younger Gen Z audience, who account for over 60% of TikTok users. This is a massive area for opportunity on the platform, and it is in brands best interest that they keep tabs on TikTok’s marketing progress.



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