TikTok Shop Ads vs. TikTok Ads: Why You Should Be Running Both

Did you know that, according to TikTok, “62% of TikTok users say they follow links on TikTok to discover products on a brand’s websites, and TikTok is driving 1.8x more online conversions than other media channels.” If you aren’t running ads on TikTok, you are missing out on a seriously hot market. TikTok ads are great for nearly every stage of the sales funnel, and when creating ads, you can run various campaign types. Today, we will break down TikTok Shop and TikTok Ads, share why you should be running both, and break down which types of campaigns we find most effective on each.

What is TikTok Shop?

TikTok Shop is an eCommerce platform integrated within TikTok, allowing users to discover and purchase products directly within the app. This means no leaving the app to complete a purchase and higher conversion rates for purchases. According to TikTok, because of the Integrated in-app checkout, discovery and purchase happen in one place to reduce friction in the buyer’s journey. 

Users can shop through LIVEs, in-feed videos, or by tapping the shop icon on a brand or creator profile, and check out directly within TikTok. Users benefit from shopping directly within TikTok because, oftentimes, brands have exclusive products only on TikTok and TikTok-only deals and promotions.

What Is A TikTok Shop Ad?

A TikTok Shop Ad is an advertising format on TikTok that allows businesses to promote their products directly within the app, providing users with seamless in-app shopping experiences. These ads utilize products from a brand’s TikTok Shop and are designed to reach relevant audiences across various placements, including the feed, search results, and the shopping center. 

There are three primary types of TikTok Shop Ads:

1. Video Shopping Ads (VSA): These ads use video content to showcase products, aiming to increase views and drive sales. They feature a product anchor link, typically represented by an orange shopping cart, directing users to the product page.
2. LIVE Shopping Ads (LSA): These ads engage audiences through live-streamed content, allowing real-time interaction and promotion of products. They help direct viewers to live shopping events, enhancing engagement and potential conversions.
3. Product Shopping Ads (PSA): These ads enable advertising using product images from TikTok Shop without the need for additional content creation, streamlining the process of reaching potential customers.

By leveraging these ad formats, businesses can effectively target users at different stages of the purchasing journey, enhancing product discovery, consideration, and conversion within the TikTok ecosystem. To set up these ads, businesses need to connect their TikTok Shop to their Ad Account and select the Product Sales objective in TikTok Ads Manager.

TikTok Shop Ad

What Types of Ads Succeed on TikTok Shop?

We have found that though you can run promotional campaigns via TikTok Shop ads you can see better results than running purchases on TikTok Ads. Why do promo ads do so well? Because you can run TikTok-only deals that users aren’t able to get anywhere else. When you offer them an in-feed exclusive deal, they are more likely to convert and purchase than if you have to have them leave the app. 

TikTok Shop ads are much better for bottom-of-the-funnel advertising and are ideal for driving immediate sales and conversions, hence why things like TikTok exclusive products and in-app promos do best. 

Pros and Cons of TikTok Shop Ads:
Pros:

• Simplifies the buying journey, which can help improve conversion rates.
  
• Takes advantage of TikTok’s native shopping tools to offer a smooth, in-app purchase experience.
  
• Well-suited for engaging TikTok’s core audience—young, mobile-first consumers.
  

Cons:

• Could require a larger budget to scale reach beyond organic visibility.
  
• You’ll need an active TikTok Shop account with listed products to get started.
  
• Selling through TikTok Shop may come with higher fees compared to processing transactions on your own site.

What is a TikTok Ad?

TikTok Ads are paid marketing campaigns that appear within the TikTok app, blending seamlessly with the platform’s organic content, which drives users directly to your website. 

TikTok Ad driving to a website

The 3 Types of TikTok Product Ads:

1. In-Feed Ads

These are native ads that appear as users scroll through their For You feed, just like regular TikTok videos.

Best for: Blending into organic content while promoting products.

Features:

• Auto-play with sound
• Include clickable CTAs (like “Shop Now” or “Learn More”)
• Can link directly to a product page 

2. TopView Ads*

These appear immediately when a user opens the TikTok app, taking over the screen for a few seconds.

Best for: Maximum visibility and brand/product awareness.

Features:

• Full-screen static or video ad
• Directs users to a landing page 
• High-impact, premium placement

*Please note that these require a large investment 

3. Branded Mission

A newer format where creators are invited to participate in campaigns by submitting content based on a brand’s brief.

Best for: Crowdsourcing authentic creator content with a performance-based model.

Features:

• Brands set the creative direction and reward top submissions
• Winning videos can be boosted as ads
• Allows community involvement with brand storytelling

TikTok also offers Spark Ads and Boosted ads, which both work to boost existing posts on your page. 

What Types of Product Ads Succeed on TikTok?

Unlike TikTok Shop Ads, traditional TikTok Ads can have a variety of campaign objectives and goals. These ads can succeed in all stages of the sales funnel, where TikTok Shop ads are better for bottom-of-the-funnel campaigns. Whether you are trying to drive brand awareness or general sales, traditional TikTok ads are the way to go to drive traffic to your website. 

Takeaways

When it comes down to it, traditional TikTok Ads are best for brand awareness and engagement where TikTok Shop Ads are best for direct sales and conversions. We love running both because it allows brands to maximize their reach and sales on the platform by leveraging both brand awareness and direct sales capabilities, creating a more comprehensive and impactful marketing strategy.