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All you need to know about TikTok’s Dynamic Showcase Ads and how to set them up with Channable

October 8, 2021

Feed managementSocial media

At the end of September, TikTok announced Dynamic Showcase Ads (DSAs), which allow advertisers to create personalized TikTok ads based on product catalogues for thousands and millions of SKUs. Channable enables advertisers to set up and optimize those product feeds and integrate them into the TikTok Ads platform. But how do Dynamic Showcase Ads work and how can you run them with Channable? Let us explain...

All you need to know about TikTok’s Dynamic Showcase Ads and how to set them up with Channable

Dynamic Showcase Ads are currently not available in all markets. Please check with TikTok if you are eligible to launch DSAs.

TikTok advertising: What are Dynamic Showcase Ads (DSA)?

TikTok’s Dynamic Showcase Ads (DSAs) are customized video ads, which are created in real-time based on an ad template. This template is programmatically filled with product information from a regularly updated product catalogue.

DSAs are TikTok’s version of Dynamic Product Ads, a type of social ad popular among advertisers for promoting large product portfolios in apps and social advertising platforms such as Facebook, Instagram or Snapchat.

These ads are part of TikTok’s full-service ecommerce solution, which comprises of an array of ad formats and tools to give “businesses the opportunity to capture the full power of TikTok's influence on purchase decisions”

What are the benefits of Dynamic Showcase Ads?

In general, advertisers use DSAs to build awareness and drive app downloads by promoting products and retargeting potential customers to increase purchase intent.

There are three main benefits for running Dynamic Showcase Ads:

Since TikTok ads are based on templates, which are automatically filled with information from a product catalogue, they are a powerful and effective solution to advertise large product portfolios at scale in a personalized way, without the hassle of creating thousands of individual ads manually.

Create highly personalised content

The adaptability and optimization of product catalogues in real time (e.g filtering out-of-stock products) together with the powerful targeting options social media platforms provide, DSAs are ideal for creating personalized ad experiences by (re-) targeting relevant products to audiences showing a specific behavior or interest. Additionally, TikTok’s advertising formats and creative templates blend seamlessly with the content created by users so ads appear more native and appealing.

Target customers across devices:

DSAs can be used to target customers who’ve shown interest in advertiser’s products across devices. For example, advertisers can target an interested visitor, who initially browsed a website on a desktop computer and later re-visits it on a mobile device.

How do Dynamic Showcase Ads work?

The core of Dynamic Showcase Ads is a product feed, a data-file, which contains all of your product information. This feed needs to be constantly updated and optimized to make DSA’s truly effective.

The product feed is connected to the TikTok Ads Manager, where the ad template pulls the product information from the feed to create the final ad. Dynamic Showcase Ads can be targeted to two types of audiences:

1. Potential new customers
Tiktok allows advertisers to specify a custom audience on adgroup level to whom the dynamic video ads should be shown.
2. Retargeting Audience
Perhaps the more interesting (and effective) way of using DSAs is by retargeting an audience, who has shown interest in a brand or product by taking specific actions on an app, a website, or the TikTok platform itself.

TikTok tracks this behavior via a pixel for websites or an SDK for apps. An advertiser can then set up certain “events”, which tell TikTok what type of behavior and products to cross reference with the uploaded product catalogue in order to serve an ad for the same product again.

4 reasons to consider TikTok advertising right now

With over 1 billion active users, TikTok has rapidly become a social media behemoth and brands and retailers have realised by now the unique advantages of the platform.

Here are 4 reasons why advertising on TikTok should be considered by brands and retailers:

Reach Gen Z

According to Wallaroo Media and Statista, TikTok’s main audience is Generation Z (age 10-19), making up an impressive one quarter of its users (25%). Late Millennials (age 20-29) are second, with almost 22% of the platform’s total users. This makes it the only global platform next to Instagram, to reach this many young adults and teenagers.
Users_by_Age_Histogram.PNG

Source: Statista

High engagement rates

According to theVerge, a study found that youngsters, age four to fifteen, spend an average of 80 minutes per day on TikTok. In general, TikTok users spend around 52 minutes per day interacting with the platform. These are impressive numbers compared to 28 minutes on Instagram and 30 minutes on Snapchat. Additionally, 68% of users claim to have watched someone else’s videos, which can lead to huge exposure for campaigns. Especially when utilising TikTok’s full advertising capabilities, like hashtag challenges and live streams. (https://influencermarketinghub.com/tiktok-stats/).

Engagement on the platform can be broken down as follows:
Actions while using TikToK (1).png

TikTok users (really) like to shop, but impulsively

According to research from GWI, more than 80% of TikTok users are more likely to cite a “buy button” on a social media platform as a purchase driver compared to users on other social networks. According to TikTok, their users are 1.7x more likely to have purchased a product they discovered from the TikTok app than any other social media platforms. However, only 14% actively research products on TikTok (compared to 28% of other social networks), highlighting the impulse shopping nature of the platform.

Increasing Awareness and Top of Funnel Communication works best on TikTok

The research from GWI also sheds light on how brands currently use TikTok Advertising. Top of funnel communication, such as creating brand awareness by sharing marketing messages (33%) is a key objective, while fewer campaigns are set up to achieve direct sales lift (26%).
Why brands use TikTok (1).png

6 Steps to set up and run TikTok DSAs with Channable

1. Create a Channable TikTok Product Feed
It’s now easier than ever to have your source feed updated, optimized and ready to go for TikTok’s Dynamic Showcase Ads. Simply upload your products to Channable and create a TikTok feed channel: You can easily categorize your products, use Channable’s rules to enrich and optimize the product information and map all relevant fields to match TikTok’s requirements.
Step 1_channable_Feed (1).png

2. Create a Product Catalogue on TikTok Ads Manager
Enter TikTok’s Ad Manager to create a product catalogue within the platform.
Step2_create_catelogue (1).png

3. Connect the product feed to the Product Catalogue
Use the URL generated in the “feed setup” step in Channable to integrate your updated product feed into the TikTok product catalogue.
step3-1_connectURL (1).png
Once a catalogue is created, you can connect Channable’s product feed to the platform by inserting the Feed’s URL. TikTok automatically loads all products into your catalogue and keeps the product file up to date. You can manage the feed completely within Channable, any updates will be updated on TikTok on an hourly basis.
Step3-2_connectURL (1).png
Step3-3_connectingURL (1).png

4. Generate one or more video templates for your catalogue
This is the fun part. TikTok provides you with quite a few ad templates in the same style as user content, which you can adapt and adjust to your brand.
Step4_generateVideoTemplates (1).png

5. Integrate Events
If you want to retarget a specific audience, which has taken action on your website or app, this is the place to fill in the pixel and set up “events”. TikTok then tracks this behavior and matches it with your product catalogue.
Step5_integrateEvents (2).png

6. Choose your audience and launch your campaign
In the final step you can setup campaigns, ad groups and ads. At ad group level you are able to select your catalogue and product sets as well as choose the audience. At ad level you can specify your video ad design and (deep) link your ads to your preferred destination.
Step6_createCampaigns (1).png

Don't lose any time and convince yourself of the most seamless way to use TikTok Dynamic Showcase Ads, either in your existing Channable account or in a free trial.

Leo DraxlProduct Marketing