- TikTok experimenting with auto-tagging products in all videos to direct to shoppable items.
- Builds on influencer links during record sales holidays but risks shifting too far towards commercialization.
- Platform must balance economic goals with community backlash over overly sales-focused experience.
TikTok’s experiment
TikTok is testing automatically tagging products in user videos to direct viewers to “find similar items on TikTok Shop.”
The experiment, reported by Bloomberg, aims to rapidly grow TikTok’s U.S. e-commerce business to up to $17.5 billion in 2023 – a tenfold increase over 2022.
The automated video product tagging builds on TikTok Shop’s current influencer-focused model, allowing approved creators to link shoppable items manually.
Capability expansion!
Expanding this capability platform-wide aligns with TikTok Shop’s breakout sales success over this past holiday season, driving 5 million first-time TikTok Shop purchasers.
However, the e-commerce push may contribute to slowing app growth, with 2023 monthly active user increases dropping to just 3% year-over-year versus 12% in 2022.
Some users have already protested TikTok Shop as overly commercializing the platform’s experience.
TikToks Plan for Success
TikTok also plans Los Angeles live streaming studios where influencers can showcase purchasable products, potentially further shifting content balance.
Ultimately, TikTok is betting big that social shopping at scale can fuel lasting business success.
However the company risks disaffecting its vibrant user community if salesmanship overwhelms creativity.
Navigating that tension – platform versus profits – may determine whether TikTok’s economic ambitions deliver boom or bust.
