The platform is appearing in formal agency RFPs alongside Amazon and Walmart as a named channel with a committed budget. Normally, it’s more of a footnote on them. That’s a significant shift in status for a platform that spent years fighting doubts about its logistics, its ability to convert consumers and its very existence in the U.S. market.
Podean, a global marketplace agency, says it is fielding dozens more brand inquiries per month compared to this time last year. The contracts being signed are 12 months or longer. And the brands writing those checks aren’t startups. Sales from brands with $30 million or more in annual revenue grew 97% year over year on TikTok Shop, with transaction volume climbing nearly 80%. Ulta Beauty and Sally Beauty have both announced storefronts recently. PepsiCo has heavily invested too.
“We are also seeing a gradual uptick in enterprise-level brands seeking TikTok Shop agency expertise as it’s a platform that truly takes a village to manage.” said Jack Johnston, vp, social innovation and growth at Tinuiti.
Marketers, as a result, expect their agencies to know it inside out.
“I can 100% attest to this being the case, particularly TikTok Shop is now being planned and measured in the same way Amazon/Walmart are,” said one agency exec who preferred to remain anonymous. “We are seeing a ton of retail clients (in particular managers of e-commerce, retail and shopper budgets) push to TikTok Shops for both direct gross merchandise value and ROAS but also as a stellar awareness and consideration channel which may end up converting elsewhere.”
