#205 HTE - TikTok's Interactive Add-Ons Amp Up! 🚀

July 08, 2023 • Estimated Reading Time: 21 minutes

Hello readers,

Rise and shine to the HTE newsletter, where we're serving up a scrumptious buffet of DTC goodness! Get ready to have your mind blown and your entrepreneurial spirit ignited. 🌟

We're about to whisk you away into a world where eCommerce reigns supreme, like a digital wonderland where dreams come true. 🛍️

So, put on your adventure hats and get ready for a wild ride filled with tips, trends, and all things awesomesauce! 🎢🌈 No time to dilly-dally, my friends! We're diving headfirst into the rabbit hole of awesomeness, and it's gonna be epic!

Let's jump right in and make some magic happen! 🚀💡

 🔥 Prime Day Mania: Retail Media Spending Skyrockets as Amazon Retailers Battle for Shopper Attention

💥 TikTok Aims to Quadruple Global Ecommerce Business, Launches US Online Retail Store

🚀 Unleashing the Power of AI: Transforming Customer Connections and Driving ROI

😢 Google Bids Farewell to Google Shopping: Acknowledges the Challenge of Becoming a Retail Destination

💡 TikTok's Interactive Add-Ons: Boost Engagement and Drive 150% Higher Purchase Likelihood

📕 Top Reads Of The Week

⚙️ Plenty Of Jobs Await You!

So, scroll down to THE VERY END & read up on what’s yet to come your way!

Prime Day Mania: Retail Media Spending Skyrockets as Amazon Retailers Battle for Shopper Attention

As the highly anticipated Prime Day approaches, the retail world is abuzz with excitement, and there's one thing on every Amazon retailer's mind: capturing the attention of eager shoppers. In this cutthroat battle for visibility, retailers are gearing up to invest heavily in marketplace ads, leading to a colossal surge in retail media spending.

According to the insightful analysis of esteemed analyst, Andrew Lipsman, the competition among sellers for visibility is nothing short of fierce. In this intense arena, the surefire way to guarantee the spotlight is to crank up your ad spend. Yes, my friend, it's a classic case of "pay to be seen," because if you choose not to, you'll be lost amidst the sea of sellers who have chosen to seize this golden opportunity.

So, just how massive is this retail phenomenon expected to be? Brace yourself for the mind-boggling numbers: Prime Day sales in the United States are projected to grow by a staggering 10.0% this year, reaching an astonishing $8.03 billion! But that's not all. Another shopping extravaganza, Prime Day Early Access, is set to rival Prime Day itself, with an estimated growth rate of 8.2% and a projected total of $5.90 billion. These numbers will surely make your head spin faster than a spinning top!

To accommodate this meteoric rise in sales and skyrocketing aspirations of sellers, Amazon's ecommerce channel search ad revenues are forecasted to reach an eye-popping $23.95 billion, marking a remarkable 16.2% growth from last year. And what's fueling this remarkable surge? You guessed it—Prime Day! This annual event has become an irrefutable catalyst for the unprecedented growth of Amazon's search ad spending.

It's no surprise that sellers are constantly seeking new avenues to stand out from the crowd. Our shrewd analyst, Mr. Lipsman, attests to the fact that Amazon's product search results remain leagues ahead of the competition. In fact, a whopping 49% of adults in the United States kickstart their product searches on Amazon, surpassing the likes of Google, TikTok, and Instagram. However, even Amazon advertisers are looking beyond the realm of search in their quest for dominance.

Enter the era of diversification! Mr. Lipsman eloquently states, "Amazon needs sellers to start advertising outside of search results because it's getting so crowded." With sellers vying for the limited real estate on search result pages, it's high time to explore alternative avenues for grabbing shoppers' attention. And so, as the world eagerly anticipates Prime Day, Amazon's ecommerce channel display ad revenues are forecasted to surge to a staggering $5.48 billion, marking an impressive 11.3% growth from last year. Prime Day serves as the perfect opportunity for Amazon to rally its advertisers and entice them to explore other captivating formats, such as display and video ads.

But wait, there's more! Prime Day's magnetic pull extends beyond the confines of Amazon's virtual kingdom. Brace yourself for a retail extravaganza that transcends borders! While Amazon takes center stage, other prominent players in the US ecommerce landscape are stepping up their game. Walmart, for instance, has cleverly timed its Walmart+ Week to coincide with Prime Day this year, a brilliant strategy that aims to capture the attention of eager shoppers. And let's not forget about the likes of Best Buy and Target, who are hosting their own events, ensuring that retail media spending is not confined to Amazon alone. It's a battle royale of deals, discounts, and breathtaking offers!

So, my friend, as the clock ticks closer to Prime Day, get ready to witness the shopping event of the year. Sellers are bracing themselves for a cutthroat competition where only the boldest, most innovative, and financially equipped can hope to claim their stake in the spotlight. With retailers channeling their investments into marketplace ads and exploring new frontiers of advertising, the retail landscape is set to be transformed into a vibrant tapestry of eye-catching displays, captivating videos, and irresistible offers. From Amazon to Walmart, from Best Buy to Target, the retail world is set ablaze with the feverish anticipation of Prime Day and the colossal surge in retail media spending that accompanies it.

TikTok Aims to Quadruple Global Ecommerce Business, Launches US Online Retail Store

TikTok, the popular social media platform, has been making significant strides in expanding its ecommerce business and diversifying its offerings. With a goal of quadrupling its global ecommerce business this year, TikTok has set its sights on generating $20 billion in sales through TikTok Shop. In addition to incentivizing retailers with free listings and shipping, the platform is planning to launch a separate online retail store in the US, potentially putting it in direct competition with major players like Amazon, Shein, and Temu.

While this move presents exciting opportunities, it also poses challenges in terms of logistics and customer experience. By transitioning from a social platform that facilitates sales to an actual retailer, TikTok will take on responsibilities related to inventory management and delivery, which could be a departure from its core competencies. Suzy Davidkhanian, an analyst, expressed surprise at this shift, highlighting the potential difficulties TikTok may face in this new venture.

To bolster its ecommerce capabilities, TikTok has been testing a visual search feature that allows users to shop for products by uploading images. This feature aims to enhance the TikTok Shop experience and address the platform's current limitations as a product search engine. Recent data suggests that only a small percentage of US adults initiate their product searches on TikTok, with the majority turning to Amazon and Google. Even among Gen Z users, the platform's popularity as a product search destination has declined. The visual search feature could be a crucial step in reversing this trend.

Furthermore, TikTok has been leveraging artificial intelligence (AI) to innovate its advertising capabilities. The platform introduced an AI ad script generator, which streamlines the ad creation process and offers marketers increased efficiency. However, there are concerns about potential issues such as misinformation and a surplus of similar AI-generated ads. Nonetheless, the integration of AI marketing tools within platforms presents an opportunity for marketers and provides a glimpse into the future of AI in advertising.

In an effort to strengthen its relationships with creators and advertisers, TikTok launched the Creative Challenge, enabling brands to submit challenges and crowdsource ad content from creators. While this approach reduces the legwork for creator-driven ads and benefits advertisers, the performance-based payment model could have long-term implications for creators. Balancing the needs of creators and sponsors will be crucial for TikTok's sustained success in this regard.

TikTok has also been expanding its presence beyond the digital realm. The platform announced a partnership with Gas Station TV, enabling TikTok content to be displayed on screens at gas stations, alongside Gas Station TV's own content and advertisements. This foray into out-of-home advertising demonstrates TikTok's ambition to reach a wider audience and attract new users.

Furthermore, TikTok's parent company, ByteDance, has ventured into book publishing, capitalizing on the popularity of #BookTok. With many users discovering their next reads through TikTok, the platform has identified an opportunity to capitalize on the books themselves. This move further diversifies TikTok's offerings and strengthens its position as a multifaceted media platform.

TikTok's achievements extend beyond ecommerce and media ventures. The platform recently surpassed $1 billion in consumer app spend, a feat no other app has accomplished. This spending largely stemmed from one-time in-app purchases of TikTok coins, which users can gift to creators. Additionally, TikTok entered the music streaming market in Brazil and Indonesia, expanding its reach to yet another form of media. This move could potentially pave the way for TikTok to make inroads into the lucrative digital audio services market in the US.

While TikTok has been successful in various endeavors, it has also faced challenges. The platform made the decision to discontinue its BeReal clone, signaling that even a powerhouse like TikTok couldn't sustain its copycat venture. This move suggests that while TikTok is eager to enter different markets, it acknowledges the need for focus and consolidation in its strategic approach.

In conclusion, TikTok's ambitious plans to bolster its ecommerce business, launch an online retail store, and enhance its search capabilities demonstrate its commitment to becoming a hub for retail ecommerce. By leveraging AI ad tools, fostering relationships with creators, exploring new media ventures, and expanding into diverse markets like out-of-home advertising and book publishing, TikTok aims to solidify its position as a multifaceted platform. However, it also faces challenges in terms of logistics, customer experience, and balancing the needs of creators and advertisers. TikTok's continued success will depend on its ability to navigate these opportunities and obstacles effectively.

Unleashing the Power of AI: Transforming Customer Connections and Driving ROI

The future is here, and it comes bearing exciting tidings for marketers. According to a May 2023 survey conducted by Botco.ai, two-thirds of marketers who have invested in AI are reaping the rewards with a positive return on investment (ROI). In fact, 43% of these savvy marketers reported a twofold increase in ROI, while an impressive 22% witnessed a threefold boost. The potential of generative AI (GenAI) to revolutionize the way brands and retailers connect with customers throughout their buying journeys is nothing short of awe-inspiring. Let's delve into the remarkable insights shared during a recent Meet the Analyst Webinar, shedding light on the myriad ways AI can propel brands to new heights.

  1. Boosting Brand Awareness: The journey begins with captivating potential customers, tailoring content to their unique needs, and forging rapid connections between buyers and brands. Enter GenAI, which can offer personalized content that resonates with specific buyers, assist in brainstorming content themes, optimize content based on distinct criteria, and generate keywords to drive website traffic. A notable case study featuring Allstate demonstrates how AI-powered content creation and real-time optimization can help highly regulated companies connect with customers at the awareness stage, meeting both customer expectations and compliance standards.

  2. Increasing Engagement: AI can be a powerful tool in guiding customers toward informed buying decisions. By providing relevant descriptions based on consumption behavior, delivering personalized recommendations, and repurposing content to make it more pertinent to individual customers, marketers can boost engagement. Additionally, crafting retargeting display ads with captivating copy and images can further entice potential buyers. The success story of Rippler Group, a provider of growth marketing expertise to B2B tech startups, highlights the use of conversational marketing platforms like Gong and ChatGPT to enhance buyer interactions, categorize questions, and target buying needs effectively.

  3. Accelerating Conversion Rates: AI can expedite the decision-making process, ultimately leading to increased conversion rates. Real-time customer support, suggestive promotional products within a buyer's budget, and sales associates armed with real-time insights and suggestions during interactions can all work wonders. Additionally, following up with customers who have abandoned their shopping carts and recommending related products can provide the gentle nudge needed to seal the deal. Tapestry, the parent company of fashion brands like Kate Spade, leverages Persado's generative AI solution, Dynamic Motivation, to personalize marketing copy based on specific buyer preferences and adapt the cart checkout experience to browsing behavior.

  4. Improving Retention Rates: Enhanced customer satisfaction is a key factor in boosting retention, and AI can play a pivotal role in achieving this. By resolving customer pain points in their preferred language, offering tailored solutions based on purchase history and past conversations, and simplifying customer support with collaborative-based approaches, brands can foster loyalty. Furthermore, providing additional upselling and cross-selling opportunities and utilizing chat functions powered by company data can further streamline the customer experience. Arm, a software design company, has successfully revitalized technical manuals with the help of Acrolinx's linguistic analytics engine, ensuring content is clear, concise, and easily understandable.

  5. Fostering Brand Advocacy: AI has the power to cultivate brand loyalty, drive long-term revenue growth, and transform customers into brand advocates. By sharing user-generated content, crafting engaging social media interactions, offering personalized incentives based on reviews and service conversations, and rewarding returning customers, brands can inspire customers to become vocal proponents. AI can even help identify positive customer experiences and enable timely rewards, nurturing relationships along the way. The Coca-Cola Co. exemplified brand advocacy by launching an AI platform that invited artists to submit Coke-branded artwork for a chance to be featured on digital billboards in iconic locations like Times Square and Piccadilly Circus.

In this age of technological marvels, marketers must embrace the power of AI to unlock its true potential. With GenAI as their ally, they can revolutionize the buyer's journey, captivate customers at every stage, and drive remarkable ROI. The transformation has begun, and those who harness the power of AI stand poised to conquer the ever-evolving realm of customer connections. The future is now—embrace it with open arms and let AI propel your brand to unprecedented heights of success.

Google Bids Farewell to Google Shopping: Acknowledges the Challenge of Becoming a Retail Destination

In a surprising turn of events, Google has finally come to terms with a harsh reality: its primary objective is not to keep users engaged on its platform for transactions but rather to usher them away from Google itself.

From the very beginning, the concept of Google as a retail destination struggled to gain traction. The inherent challenge faced by any ad-based platform in the retail space is the slim profit margins involved. While retail companies can leverage advertising to bolster their margins, it is far more challenging for advertising-focused entities to allocate resources and prime real estate to inventory, which could be better monetized through high-margin ads.

When comparing social media platforms to search engines, the former holds a slight advantage. On social media, users tend to spend a significant portion of their day, enabling brands to keep their attention within the platform. However, the core behavior of Google users is driven by the intent to venture elsewhere. Despite various attempts to prolong users' stay on Google, virtually every endeavor in that direction has proven unsuccessful, with only a few exceptions such as Gmail and mobile phones.

Google's foray into the realm of shopping has been fraught with challenges and setbacks. In 2006, the company introduced "Google Checkout," a service that allowed merchants to facilitate transactions on their websites using Google's payment system. However, this endeavor failed to gain traction as website integration proved cumbersome, and consumers already had established alternatives like PayPal.

Undeterred, Google launched Google Shopping Express (later rebranded as Google Express) in 2013, aiming to create a marketplace that would keep consumers within the Google ecosystem. However, this ambitious project also met its demise, despite efforts to onboard retail partners.

Former President of eCommerce at Google, Bill Ready, had placed significant emphasis on Google's shopping marketplace, even considering dropping commission fees to zero. However, these efforts failed to yield the desired outcomes, leading to the demise of the program. It is unlikely that Google will resurrect this venture anytime soon, and many would say good riddance.

Those who have experience running websites understand the significant impact of traffic sources. Visitors arriving from Pinterest differ from those originating from Google ads or lower-funnel organic blog articles, each carrying distinct intentions and behaviors.

This brings us to the crux of the matter when it comes to building marketplaces with existing traffic: intent matters. Regardless of the deployment of AI, personalization, or incentives, the effectiveness of a visitor's session remains largely dependent on their intent. In light of this, what should businesses do instead?

The key lies in catering to the specific needs of each visitor. Building trust through proven products and fostering direct usage, similar to Amazon's approach, is paramount. By leveraging the loyalty of repeat customers and gradually expanding their purchase history, companies can cultivate a more personalized and satisfying experience.

While the technology behind building marketplaces has become more accessible, thanks to the efforts of companies like Mirakl, the true complexity lies elsewhere. Ensuring relevance to buyers in terms of convenience and selection, fulfilling the objectives of suppliers in terms of attracting new buyers and driving incremental sales, maintaining high-quality products and reliable delivery, and effectively merchandising products in a coherent manner are the intricate challenges that marketplace builders must overcome.

The curtain has fallen on Google Shopping as Google acknowledges the difficulties it faced in transforming into a thriving retail destination. The company now recognizes the importance of directing users to external platforms for transactions while focusing on other aspects of its ecosystem. The demise of Google Shopping serves as a reminder that intent plays a crucial role in shaping user behavior, and businesses should adapt their strategies accordingly to meet the specific needs of their visitors.

TikTok's Interactive Add-Ons: Boost Engagement and Drive 150% Higher Purchase Likelihood

TikTok, the popular social media platform, has introduced a game-changing feature that is revolutionizing the world of advertising. With the global availability of Interactive Add-Ons for In-Feed Ads, TikTok has opened up a whole new realm of possibilities for brands to captivate their audience and boost sales. These interactive elements, including popups, stickers, and more, offer a unique and attention-grabbing way to engage viewers.

The impact of these Interactive Add-Ons is nothing short of remarkable. According to data, viewers who interact with a TikTok brand video are 150% more likely to make a purchase. This statistic alone highlights the incredible potential that these add-ons hold for businesses looking to drive conversions and maximize their marketing efforts.

What makes these Interactive Add-Ons so powerful is their ability to capture the audience's attention with sound-on, full-screen content. They can be customized to suit both Standard and Premium needs, catering to various marketing goals and objectives. For those seeking lower-funnel marketing outcomes, the add-ons can be tailored to drive direct sales. Meanwhile, for brands looking to create awareness and engage with their target audience, these interactive features can fulfill upper-funnel marketing objectives.

Let's take a closer look at the Premium Add-On options that TikTok offers. The Pop-out Showcase feature allows brands to shine a spotlight on their products, compelling users to take action. Gesture-based interactions surprise and delight the audience, boosting engagement and participation. The Super Like 2.0 feature grabs attention with floating icons that appear when users interact with the ad, creating an immersive and memorable experience.

Not to be overshadowed, the Standard offerings also provide valuable tools for marketers. The Display Card feature drives traffic with visually striking imagery that catches the viewer's eye. The Gift Code Sticker helps increase conversion rates and fosters customer loyalty by offering special incentives. The Voting Sticker allows brands to connect with their audience through polls or quizzes, encouraging interaction and feedback. Lastly, the Countdown Sticker generates a sense of urgency and fear of missing out (FOMO) by showcasing a visual timer for upcoming events.

The benefits of incorporating Interactive Add-Ons into your TikTok advertising strategy are undeniable. Not only do they provide a unique and engaging way to capture the audience's attention, but the data also shows that they effectively guide viewers down the sales funnel. Real-world examples further emphasize their impact. For instance, Sour Patch Kids, a popular candy brand, experienced a remarkable 136% increase in click-through rates by utilizing Display Cards in their TikTok ads.

By embracing TikTok's Interactive Add-Ons, brands have the opportunity to unlock their marketing potential and create memorable experiences for their audience. These interactive elements not only enhance user engagement but also drive tangible results. Whether it's boosting sales, increasing brand awareness, or fostering customer loyalty, TikTok's Interactive Add-Ons empower brands to make a lasting impression and achieve their marketing objectives. So why wait? Dive into the world of Interactive Add-Ons and witness the transformative power they hold for your brand's success.

📕 Top Reads Of The Week

IN NEED OF A JOB?  WE'VE GOT PLENTY AWAITING YOU!

Management Accountant - Neogen

Ecommerce Manager - Blundstone

Wholesale Channel Lead - Driftaway Coffee

Quantity Surveyor – Glazing

Freight Trade Support - RWE

CHOOSE SUCCESS below and have a great weekend! Get that D2C business runnin’.