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October 13, 2024
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TikTok’s Search Ads are live, but advertisers aren’t ready to reallocate those Google dollars

By Seb Joseph and Krystal Scanlon  •  October 1, 2024  •

It’s official: TikTok now has a search advertising business, and it’s wasting no time trying to convince marketers to buy into it. 

TikTok reps are rolling out financial perks and strategic incentives to get ad dollars flowing into this new offering. 

Marketers are so far intrigued, but are still wondering if it’s the right fit. Are these ads a complement to their existing TikTok spend? Or something entirely different? They’ll need time to test and figure it out. One thing’s certain, though: Google’s throne isn’t under threat just yet.

Advertisers can now pay to show up in TikTok search results, but that’s where the similarities to Google end. Users come to TikTok with a different mindset — more passive and open to discovery, compared to Google’s searchers, who are typically driven by intent.

TikTok execs have been reiterating this in their conversations with agencies and brands in recent weeks. They’re pitching search ads as a way to boost product discovery and research, not as a direct sales driver. Yet they’re still pushing the narrative that these ads can deliver performance metrics and have even hinted that marketers should consider reallocating budget from other performance channels.

So far, marketers aren’t ready to take the bait. The promise of performance is enticing, but TikTok needs to do more convincing before budgets start shifting.

As Jon Molina, vp of paid social at BrainLabs explained: “From our perspective, while TikTok has positioned their search tool as an alternative to traditional search and has inquired about sourcing budget from other channels, we view it as an additional placement against the app to optimize against and advocate for more budget against if performance dictates it. Not as a replacement or competitor for traditional search.”

That could change over time. Ad execs like Molina are watching TikTok’s moves closely, curious to see if these search ads can actually drive concrete actions like purchase decisions. But so far, the early tests and case studies haven’t turned interest into investment. They want to see more evidence before they make that call. 

Here’s why: When Tinuiti tested TikTok’s search ads for its clients, most saw softer CPCs and CTRs compared to incumbent search engines — and even compared to TikTok’s in-feed ads, said Jack Johnston, senior innovation and growth director at Tinuiti. However, two brands saw a different story unfold. Not only did they achieve stronger CPCs and CTRs than their usual TikTok campaigns, but TikTok Search also outperformed Google Search on CPC, CTR, and ROAS, continued Johnston. 

And therein is the crux of the matter with these ads. Sure, on the surface those numbers look promising — they hint at a potential new performance playground that’s unlike anything else on media plans. But at the end of the day, they’re just that: promising. And until TikTok can turn promising into proven, most marketers will keep their wallets on standby.

“While TikTok’s initial Search Ads performance appears strong, our team would need to see how this evolves when more advertisers begin testing and potentially bidding for the same keywords,” said Colleen Fielder, group vp of social and partner marketing solutions at Basis Technologies

And that’s just part of the problem for TikTok.

There’s also the question of control — or, rather, the lack of it. TikTok’s search ads have been a sore spot for advertisers ever since the platform began experimenting with them last year. In those early days, TikTok called all the shots, deciding which queries triggered which ads. The new setup gives marketers more choice… kind of. They can now select keywords from a predefined list. But guess who controls what’s on that list? Not the advertisers.

That’s the sticking point. The initial tests left a lot to be desired, with performance and brand safety concerns tied to how TikTok’s algorithm determined which search terms warranted a paid impression. Some made sense, while others were completely off-base or even risky for brands. 

Still, these early bumps don’t mean TikTok’s search ads are dead on arrival. After all, skepticism from marketers is par for the course with any new ad format, and TikTok’s latest has a few strong points working in its favor. 

For one, advertisers don’t have to create new content specifically for these search ads. Instead, they can use existing video creatives, making it a low-lift addition to their campaigns. Plus, TikTok has been dangling ad credits for those who committed spend before September, incentivizing early adoption. The more they invested, the more credits they earned, making it a tempting offer for those willing to experiment.

So, while TikTok still has some algorithm kinks to iron out, the incentives and ease of integration give its search ads a solid shot at gaining traction — provided the platform can prove it’s worth the investment.

” From a social perspective, it’s the collaboration we’ve been waiting for, said Lauren McFarland, director of influencer marketing at digital ad agency Journey Further. “Until now, most advertisers view TikTok as a good option for awareness campaigns – in tailoring ads to match search behaviors you can strategically reach people searching for a topic so the search ads campaign feature and the search ads toggle, if integrated well, should pose a solution to genuine problems; maximizing search opportunities and increasing conversions.”

https://digiday.com/?p=556731

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