TikTok is apparently testing pay-per-click advertising

Anne Freier

In App Business. November 8, 2019

TikTok is apparently testing pay-per-click advertising as part of a move from direct ad sales to self-service advertising.

According to information obtained by Digiday, the popular video app wants to expand how many advertisers it can reach by providing them with the tools to manage their own ad campaigns.

The addition is first being tested in Italy, UK, France, and the US.

But in comparison to Facebook and Google, the addition would not be a full self-service model. The company’s ad sales team will still be involved in the delivery of ads and campaigns across the app.

Two different auction models are currently beta-tested: cost-per-click and optimised CPC. Advertisers can choose their preferred format and TikTok will then target users most likely to convert.

The 15-second video app is made by Chinese company Bytedance and currently enjoys a valuation of $78 billion.

AS popularity has skyrocketed across Western markets, advertisers such as Ralph Lauren, Chipotle and beauty companies like Eos have been running campaigns to reach a largely teenaged audience.

According to buyers, TikTok’s ad business resembles that of Snapchat during the early phase of the app.

As of right now, the app still lacks sophisticated measurement tools to help brands understand ad performance on the app.