With over 1.5 billion global users and a high concentration of Gen Z and millennial shoppers, TikTok has become a platform where product discovery, storytelling, and instant conversion intersect.

Why TikTok Is a Powerhouse for E-Commerce

• Short-form video is now the default content format for younger consumers — and TikTok leads the space.

• The platform’s algorithm personalizes content with uncanny accuracy, making even unknown brands discoverable.

• TikTok users don’t just browse — they buy, especially when content is authentic and social proof is strong.

• Features like TikTok Shop, Live Shopping, and native checkout have made the app a one-stop experience — from impression to transaction.

According to TikTok's internal data, 72% of users say they discover new brands through the platform, and 47% have made a purchase after seeing a TikTok ad.

Types of TikTok Ads (and When to Use Them)

Here’s a breakdown of TikTok’s main ad formats and where they fit in your funnel:

• In-Feed Ads: Awareness + Direct Traffic / Appear organically in the "For You" feed, blend with user content

• TopView Ads: Mass Reach + Launches / Full-screen takeover when users open the app

• Spark Ads: Trust + Engagement / Boosts high-performing organic posts or UGC (great for social proof)

• Branded Hashtag Challenge: UGC at Scale / Invites users to create content around your theme/product

• Branded Effects: Interaction + Fun / Filters, stickers, or lenses to promote playful brand engagement

Setting Up Your TikTok Ads: Step-by-Step

1. Create a TikTok Business Account: Access the Ads Manager, track performance, and get insights.

2. Choose Your Campaign Objective: Options include: Reach, Traffic, Video Views, Conversions, App Installs, Lead Gen.

3. Define Your Target Audience: Target by location, age, gender, interests, and device — or upload custom/lookalike audiences.

4. Create High-Impact Creatives: TikTok content performs best when it’s raw, short, and story-led. Think less “TV ad,” more “entertaining product demo.”

5. Set Your Budget & Schedule: You can run campaigns starting at £20/day. Use auto-bidding if you're unsure where to begin.

6. Measure & Optimise: Use TikTok’s native analytics or integrate with your e-commerce platform to track conversions, ROAS, and CAC.

Tips for Maximising TikTok Ad Performance

• Use Creator Content (UGC): Spark Ads allow you to amplify organic posts — which often outperform polished brand videos.

• Follow TikTok Trends: Leverage trending sounds, challenges, or transitions to stay relevant.

• A/B Test Creative Hooks: The first 2 seconds make or break an ad — test different openers to see what sticks.

• Keep It Short & Punchy: 15 seconds is often more effective than 30+. TikTok users scroll quickly.

How Much Do TikTok Ads Cost?

TikTok Ads are auction-based, so pricing varies depending on your targeting, industry, and competition. Here's a rough guide:

• CPM (Cost per 1,000 views): £1.50 – £7

• CPC (Cost per Click): £0.20 – £0.80

• CPA (Cost per Acquisition): Varies widely based on product and creative

For brands just starting out, Spark Ads (boosting UGC or influencer content) often offer the best balance of engagement and cost-efficiency.

Why TikTok Belongs in Your 2025 Marketing Mix

TikTok isn’t just another platform — it’s where brand discovery, entertainment, and shopping converge. For e-commerce brands looking to break through crowded feeds and deliver measurable results, it’s a high-potential (and still underpriced) channel worth mastering.

In 2025, successful e-commerce operators are using TikTok not just to reach more people, but to convert curiosity into clicks — and clicks into customers.

Want to connect your TikTok campaigns directly with your fulfilment operations? Make sure your backend (inventory, fulfilment, returns) is built to match your front-end growth.