TikTok’s role in commerce is growing as it drives more brand discovery
As retailers and brands grapple with evolving discovery-to-purchase patterns in digital commerce, TikTok has emerged as a key driver of both online and offline sales.
A new Ipsos study, conducted in collaboration with TikTok, reveals that TikTok’s influence on commerce extends far beyond viral product trends, with 81% of users citing the platform as a source for authentic product reviews. The report, Commerce Redefined, is based on a survey of U.S. consumers and TikTok shoppers, and features in-depth interviews with marketers in various industries, including CPG, beauty and electronics.
The research sheds light on how discovery, authenticity and seamless shopping experiences are reshaping today’s consumer journey, offering opportunities for businesses of all sizes.
“The big change has been a move away from traditional search engines as a point of discovery to something more engaging, like TikTok,” one fashion executive noted to Ipsos. “TikTok becomes the point of discovery.”
Fostering discovery, driving sales
TikTok’s strength lies in discovery. Relying on an interest graph rather than a social graph, TikTok’s For You feed curates personalized content and shopping adventures tailored to each person’s interests.
“TikTok is more than just an entertainment platform,” said Jessica Phan, svp and senior client officer at Ipsos. “It’s reshaping the commerce landscape, turning everyday scrolling into a gateway to exploration and transaction.”
Not only does the content remain fresh, engaging and relevant, but it continuously introduces new brands and products. For instance, petroleum jelly products experienced a cultural resurgence thanks to K-beauty skincare enthusiasts on TikTok who demonstrated the ‘slugging’ technique for achieving glass-like skin.
Even mundane items like tinned fish and cucumbers have found renewed cultural significance through viral trends on the platform. For advertisers, this means reaching audiences beyond their core persona or target market, opening doors to previously untapped audiences.
According to Ipsos research, 68% of shoppers on TikTok agree that TikTok makes it easy to find their favorite brands, products or services — higher than other media platforms. Despite TikTok Shop only launching in September 2023, the study found that users already perceive it as delivering personalized recommendations on par with established e-commerce platforms in the US.
Building trust through authenticity
The TikTok community rewards authenticity, making it the ideal space for product launches, brand storytelling and co-creating new brand identities. It also fosters meaningful customer relationships through live shopping, comments and creator partnerships.
More than eight of 10 users surveyed (81%) said that TikTok offers a view into real-life product usage, and 37% said ads or content on TikTok helped them decide what to buy.
Aaron Jones, vp of e-commerce and media at Liquid I.V., shared with Ipsos how the company embraced TikTok Shop as a pivotal part of its e-commerce strategy.
“An affiliate creator created an honest review that took off, resulting in a sales lift across omnichannel and a full sell-out of the flavor with over 59,000 total orders on TikTok Shop,” Jones said. “Of the Hydration Multiplier Popsicle Firecracker purchasers in May and June, 88% of the orders were new customers to Liquid I.V., which proved to us the importance of TikTok Shop as a sales channel and how critical it is to be active on the platform to drive discovery and demand.”
Tapping into the new era of commerce on TikTok
TikTok is investing in tools and solutions to drive the next phase of commerce. From advertising solutions to e-commerce features like TikTok Shop, the platform offers a seamless shopping experience for users.
Brands can start by selling products directly through TikTok Shop. This offering turns discovery into purchases with features like shoppable videos, LIVE Shopping and shop pages. TikTok’s affiliate program also helps brands connect with creators for their authentic voices and engagement.
Always-on tactics guide users from in-app engagement to purchases on a brand’s website or e-commerce platform. A hybrid strategy that combines advertising (including TikTok Catalog Ads and Spark Ads) and e-commerce (such as opening a TikTok Shop) moves consumers from discovery to purchase, in stores or online.
Advertisers can also use TikTok’s new AI-powered automation tools, Smart+ and GMV Max, to reduce the time spent with hands-on campaign management across targeting and bidding. Marketers benefit from increased performance and gain time to focus on creating authentic, compelling creative.
In this dynamic digital ecosystem, brands can leverage TikTok’s innovative tools to bridge discovery and purchase for sustained engagement and growth.
Sponsored by TikTok