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With its new partnership with Shopify, TikTok appears ready to take the battle with Facebook that has also introduced new e-commerce features on its Instagram app.
Facebook Inc (NASDAQ: FB) is set to have a new advertising competitor in the United States as TikTok is looking to aggressively expand its operations into e-commerce. This means that the dominance of the leading social media giant is going to be tested from the Chinese-owned app.
The video app had informed advertisers about new features it was going to be adding to its platform this year. According to available details, the firm would be going the traditional route of affiliate marketing where a tool would be enabled for the app’s most popular users to link products and earn commissions on any sales made via the link.
TikTok and Its e-Commerce Plans
A senior advertising executive was quick to point out that popular content creators do not necessarily need to be a brand ambassador before they can earn a commission via this new feature. He added that users can link to any product of their choice and they would be able to leverage on their popularity to earn more via the app.
Not only that, part of TikTok e-commerce push is another feature that would allow brands to show catalogues of their products via the viral-video app. Those in the know added that the ByteDance-owned application is going to also add a Walmart-like live shopping feature. According to them, this would be a “mobile phone version of television shopping channels, where users can buy goods with a few taps after seeing them showcased by TikTok stars.”
Plans are already underway for the app to improve on its current advertising system as it looks to further develop its self-service ad platform. This way, brands would no longer need the services of a middleman to place their ads on the platform. It is also aiming to improve its ad tools like user targeting to better help advertisers reach the right people who might be in need of their products.
And with its new partnership with Shopify, TikTok appears ready to take the battle to Facebook that has also introduced new e-commerce features on its Instagram app that would make it easier for people to purchase new products. The social media giant also added a digital shopping channel to its main Facebook site too.
It would be recalled that the video app had faced some level of hostilities in the US during President Trump’s administration, however, hopes are high that the new administration was going to make more Americans and advertisers relaxed about the future of the app in the country.
UK’s FCA Warn TikTok Users against Taking Investment Advice on the App
The United Kingdom’s top financial regulator, Financial Conduct Authority (FCA), has warned investors in the country to be wary of taking financial advice on TikTok. According to the authorities, the recent influx of investments advice on social media due to the activities of the WallStreetBets group has put investors in a somewhat tight position.
Cristina Criddle, a spokesperson of the agency noted that there are risks associated with “taking unregulated investment advice.” She added that the agency was always in contact with social media sites to remove pages that are in direct breach of the regulations of the authorities too.
A report by Paxful showed that over half of the influencer accounts on TikTok had posted a minimum of one misleading “investment advice” video.
FCA advises those on the platform to “be wary of adverts and advice online and on social media promising high-return investments, and should always do further research on the product they are considering.”