The video portal TikTok now offers US users a shopping function. This allows companies to sell their products directly via the app. While the platform enters the retail market, competitor Instagram is increasingly stamping out its live shopping feature. Users have been able to offer products via the Meta subsidiary since 2018. Now even employees are informed about a shift in interests away from shopping and towards advertising.
Market with potential
“For small companies that do not have sufficient financial resources for advertising campaigns or their own online shops, a shopping mode offers many advantages. At the same time, they become very dependent. Large companies have often copied business models and thus pushed smaller companies out of the race.”
Marketing expert Bernd Pfeiffer from LimeSoda told press text
Two-thirds of all TikTok users were inspired to make a purchase via e-commerce that they hadn't planned, according to a 2020 study by Walnut Unlimited. With an average of one billion users per month, this results in 670 million potential customers for the providers. For this reason, influencers like Kylie Jenner have long been selling their products through their social media channels.
Danger to young people
Children and young people are particularly vulnerable to surreptitious advertising and impulse purchases. The age of most TikTok users is between 18 and 24 years old. The app is also frequently used by younger generations, despite the mandatory minimum age of 13 years.
“TikTok and similar apps have been criticized for a long time. When a shopping model is introduced, the issue of youth protection increasingly comes to the fore. There is a threat of debt trap.”
Marketing expert Bernd Pfeiffer from LimeSoda in a press release conversation
Source:
Press release
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