Why Retargeting on TikTok Is Fueling US E-Commerce Businesses’ Sales

TikTok has become one of the most powerful weapons for American e-commerce businesses in just a few years, not just due to its huge user base, but due to its targeting capabilities. TikTok brand advertising, and even more so through retargeting, has been a revolution for many American e-commerce businesses as they attempt to make sales. Through data-driven insights, businesses can re-target interested buyers who have already shown interest, leading to higher conversion rates and improved ad spend.
Here we will guide you through the manner in which retargeting on TikTok is helping e-commerce businesses drive their sales to the peak, and giving them valuable tips and real-case success stories.
Retargeting, which is a strategy to target customers who have previously interacted with your brand, is now one of the most effective methods of sales and customer retention. In online businesses, this strategy is particularly effective because it allows them to reapproach customers who already know about their products very well.
TikTok brand advertising, through retargeting, enables the advertiser to message the most likely-to-buy user. With its extremely sophisticated targeting abilities, TikTok enables brands to use their own data to present extremely relevant ads to users at the most strategically opportune moments within the buying process.

1. What is TikTok Retargeting?

Define Retargeting and Its Purpose

Retargeting is an internet advertisement technique where the ads are sent to users that have already connected with your business, e.g., visited your site, put items in a basket, or clicked on a banner. As opposed to tossing a line in and hoping for the best you would catch potential customers, retargeting directs the ads towards users that have already shown an interest in your products or services.
Retargeting is highly effective on TikTok due to the highly interactive video nature of the platform and the capability of monitoring user interaction in real-time. For internet businesses, retargeting serves to bring back users who are in the consideration phase, pushing them to conversion.

How TikTok Enables Retargeting Using Data-Driven Insights

TikTok employs its sophisticated AI and machine learning technology to collect data on the activities of its users. These include:

• Video views: For how long did the person view your video and did they engage with it (likes, comments, shares)?
• Website visits: If the user clicked from your TikTok ad to your website.
• Add-to-cart activities: When customers added items to cart but did not make a purchase.

With this information, TikTok's retargeting platform can construct highly targeted ads that expose individuals to things they have previously expressed interest in, or comparable things they may be interested in. This data-driven approach significantly improves the possibility of converting the viewers into customers.

2. Benefits to E-Commerce Brands

Increased Conversion Rates

One of the greatest advantages of TikTok retargeting is to significantly increase conversion rates. Because retargeting is to advertise to users who have already interacted with your company in some way, they will likely convert if presented with an ad. They already know your company and the products that you have for sale, so they will more than happily make a purchase as well.
For instance, if one product was placed on a cart by the customer but never had a purchase follow through, you would retarget them by reminding or enticing them to make the purchase. You can make use of retargeting in order to recover leads which you would otherwise lose.

Cost-Effectiveness

TikTok retargeting campaigns cost less than the average prospecting campaigns because you are targeting a smaller, qualified audience. Since you are targeting users who are already interested, you have a better conversion success rate. That means lower cost per acquisition (CPA) and better return on investment (ROI) on ad spend.
Instead of throwing money at attempting to gain completely new audiences, retargeting enables online companies to make the most of what they already possess, minimizing wastage and maximizing budget efficiency.

More Interaction

Another benefit of retargeting on TikTok is that it offers more engagement. Re-engaging past users who have already made contact with your brand allows you to establish a stronger connection. The video platform of TikTok and its short attention span make it ideal for re-capturing users' attention and reminding them of your brand's value proposition.
Further, TikTok's interactive features such as challenges, polls, and user-generated content can make retargeting advertisements more interactive and prompt users to engage again. Whether it's a discount coupon, new product launch, or a simple reminder, TikTok retargeting makes users remember your brand.

3. How to Execute Retargeting Strategies

Hiring TikTok Advert Services

To use retargeting on TikTok efficiently, most e-commerce companies collaborate with TikTok ad agencies. TikTok ad agencies make it easier for companies to come up with and implement retargeting campaigns so that the right users are targeted at the right time with the right content. TikTok's native ad manager also has robust features for monitoring user behavior and triggering retargeting campaigns based on app or website activity.
By leveraging the use of expert knowledge, sophisticated analytics, and ongoing optimization via the employment of TikTok ad services, companies are able to maximize the utilization of retargeting campaigns.

Segmenting Audience

Good retargeting comes from good segmentation. As long as companies have some segments of audiences in behavior or phase within the customer journey, they will be able to tailor their advertisements to cater to the specific need of each segment. For example, you are able to target:

• Customers who visited the product page but did not purchase.
• Individuals who viewed an ad but never visited the page.
• Customers who added items into the shopping cart but left it behind.

Audience segmentation enables more focused messaging, so each advertisement is as focused as you can possibly get.

End-Point Optimisation

Just like any other online marketing activity, TikTok retargeting campaigns must be optimized in the long run to be successful. It must be closely monitored for key performance indicators like click-through rates (CTR), conversion rates, and return on ad spend (ROAS) to see if optimizations must be done.
A/B testing is particularly useful for retargeting campaigns. Using different ad creatives, offers, and CTAs, you can try out your message and ensure campaigns are delivering you the best possible results. TikTok's analytics dashboard gives you deep insight into ad performance, and you can easily refresh targeting, budget, and creative assets at real-time.

4. Case Studies & Quantifiable Outcomes

Case Study 1: Fashion E-commerce Brand

One fashion e-commerce site had an ad retargeting campaign on TikTok with users who had previously visited their website but did not make a purchase. The company provided a 10% discount with the retargeted ad, and they boosted the conversion rate by 25%. The audience was divided based on product interest (i.e., dresses, shoes), and the company was able to expose the products to the users, which resulted in an enormous boost in sales.
Earlier, the firm had reported a 3% ad conversion rate on TikTok.
Following: Following retargeting, the rate of conversion went up to 7.5%, which was the outcome of subsequent targeted advertising.

Case Study 2: Health Supplement Brand

One brand used retargeting on TikTok to target customers who viewed their ad but did not buy. The brand made the first touchpoint personal by educating customers about the value of their products and an exclusive discount. The brand saved 15% on its customer acquisition cost, and sales increased by 18%.

Earlier: The brand's CPA was $20 per conversion.

After utilizing retargeting, the CPA dropped to $17, and the sales grew by almost 20%.

Conclusion

TikTok retargeting offers e-commerce marketers a strong tool to re-engage users who have already shown interest in their products, leading to conversion rates and return on investment. Through the use of TikTok's sophisticated targeting features, e-commerce brands can maximize their spend on the platform while minimizing wasteful impressions, making retargeting a leading strategy for brands looking to scale on TikTok.
Call to Action: Are you ready to make your TikTok advertising soar? Leverage the retargeting power to boost sales and maximize your ad spend. Contact The Short Media to learn how our TikTok advertising solutions can drive your e-commerce site to success.