📱 TikTok introduces Smart+ AI ad tool
TikTok has launched a new AI-powered ad management tool called Smart+. The tool uses TikTok's AI to streamline ad creation and optimize key performance indicators like conversions and lead generation. With Smart+, advertisers can input targeting goals, budgets, and assets, and the tool handles the rest, finding the right audience for the ad at the right time. This aims to reduce the time and effort required to manage ad campaigns, making it more accessible to brands with smaller budgets.
📈 Promising 53% increase in returns
According to TikTok, advertisers who used Smart+ saw an average 53% improvement in return on ad spend (ROAS). This puts the tool on par with similar AI-powered solutions from major competitors like Meta’s Advantage+ and Google’s Performance Max. The demand for AI in advertising is on the rise, with 65% of US marketers using or experimenting with AI in their campaigns. However, TikTok faces stiff competition from other ad platforms already offering AI solutions.
🌍 Global AI adoption rates
The use of AI in advertising is growing worldwide. In India, 92% of marketers say they are using AI tools, compared to 79% in Australia and 78% in Germany. The US, however, lags behind, with 65% adoption according to a recent Adobe survey. TikTok hopes that Smart+ will attract a wide range of advertisers, from large brands to small businesses, looking to improve their campaign performance with minimal effort.
⚖️ TikTok’s legal challenges in the US
Despite the positive reception of Smart+, TikTok faces significant legal uncertainties in the US. The Biden administration has proposed a ban on the app, citing concerns over data privacy and security. TikTok’s parent company, ByteDance, is currently in court to challenge the ban, with a decision expected next year. This uncertainty could deter some advertisers from fully committing to the platform. TikTok is pushing forward, though, stating that Smart+ can still offer considerable benefits despite these legal challenges.
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