TikTok Ads for e-commerce in 2025 are driving record-breaking results with advanced ad formats and platform-native features. So, how can you boost your sales with TikTok Ads for e-commerce? All of this is answered in the below article!
Quick Summary
- Best TikTok Ad Formats for e-Commerce in 2025: Collection Ads, Dynamic Showcase Ads (DSAs), Shopping Ads (Video, LIVE, Catalog), and Carousel Ads.
- Shopping Ads Availability: TikTok Shopping Ads are available in the US, UK, Indonesia, Vietnam, Thailand, Malaysia, the Philippines, and Singapore.
- Platform Advantage: TikTok offers lower CPMs and higher engagement than Meta, making it cost-effective for product sales.
- Pro Access: Advanced ad formats like DSAs and LIVE Shopping Ads require a TikTok Agency account.
Is TikTok ad suitable for the e-commerce market?
With unique ad types for promoting product collections, as well as a Shopify integration, TikTok has transformed from being one of the most popular social media to a complete e-commerce platform for users!
- Impressive User Base: TikTok has over 1.6 billion monthly active users globally, making it a massive platform to reach potential customers.
- E-commerce Growth on TikTok: TikTok has witnessed a significant rise in e-commerce activities. As of 2023, TikTok Shop was introduced in the US, indicating TikTok’s intent to strengthen its position in the e-commerce market.
- High User Engagement: TikTok users spend an average of 52 minutes per day on the app. This high engagement rate provides ample opportunities for e-commerce brands to showcase their products and engage with the audience effectively.
- Increased Brand Engagement: TikTok users tend to engage more with brands compared to users on other social media platforms. TikTok Ads encourage this engagement, allowing e-commerce brands to connect with their target audience more effectively.
- Diverse Ad Formats: TikTok offers diverse and interactive ad formats like In-Feed Ads, Branded Hashtag Challenges, TopView Ads, and more. These formats are particularly effective in grabbing users’ attention and promoting e-commerce products and services.
- Reach more audiences in key demographics: TikTok’s algorithm has a good understanding of its market and has been able to integrate adverts without turning off its most important consumers. This offers mass access, especially when you consider their increasing user base.
- Lower cost of advertising: Compared to Facebook and Instagram, TikTok ads cost are relatively cheaper. So, it will cost less for each marketing campaign than advertising on two other platforms.
- Positive ROI: Many e-commerce brands have reported a positive return on investment (ROI) from their TikTok ad campaigns. The ability to target specific demographics and interests contributes to this success.
>>> Read More: Advantages of Embracing TikTok E-commerce to your Businesses
The Best TikTok Ad Formats for e-Commerce
Besides the common types of TikTok ads, Mega Digital will give you 4 more advertising methods to market your e-commerce business on this platform as follows:
- Collection Ads
- Dynamic Showcase Ads
- Shopping Ads
- Carousel Ads
1. TikTok Collection Ads
What are TikTok Collection Ads?
Collection Ads, which are a component of TikTok’s Shopping suite and were created for eCommerce, are currently being tested in a few regions. Users of the TikTok platform may search for, discover, and browse products on their mobile devices in full-screen mode. These types of ads direct potential consumers to an Instant Gallery Page by use of swipeable product cards and In-Feed video advertisements.
Benefits for e-commerce
TikTok Collection Ads is the perfect fit for e-commerce marketers:
- Simpler for consumers to find and discover more relevant products that they’re interested in.
- Enable brands and businesses to deliver individualized, distinctive product recommendations based on relevancy for each visitor.
- Create immersive and highly engaging experiences for customers
- Collect signals and serve ads to higher-quality audiences without the need for pixels.
How does it work?
You must post adverts after setting up your Instant Gallery Page. Then, every product will go through a review process, unlike ordinary advertisements. Results can be checked using the Instant Gallery Page Editor or your catalog. You should keep in mind that the Collection Ads or Instant Gallery Page will not display any products that do not pass this review.
These TikTok Shopping advertisements require users to exit the app and visit your store, unlike standard In-Feed ads. To test this form of advertisement, you must:
- Make sure your TikTok product catalog is set up.
- Establish your campaign.
- Create a campaign gallery page.
With Collection ads, sellers can sync and integrate existing products listing from Shopify, WooCommerce, or many other e-commerce platforms to start a collection.
Brands using TikTok Collection Ads
Gushers, a well-known candy Pennsylvania company, excels in making engaging and inventive TikTok advertisements. Their videos frequently attract millions of views and a ton of interaction as a result. For instance, one of their initial TikTok advertisements received almost 5 million views.
@therealgushers Literally bussin’ #chiligushers #picklegushers ♬ original sound – Gushers
2. TikTok Dynamic Showcase Ads (DSAs)
What are Dynamic Showcase Ads (DSAs)?
Dynamic Showcase Ads (DSAs) on TikTok are personalized video advertisements. They are produced in real-time using an advertisement template. Product details from a frequently updated product catalog are used to fill out this template.
In TikTok’s full-service eCommerce solution, DSAs play a significant role. It includes a variety of features and ad types that are intended to allow businesses “the ability to capture the full power of TikTok’s effect on purchase decisions.” However, this ad type is only available in whitelisting features of the TikTok Ad Agency account, so make sure to contact the TikTok agency – Mega Digital for the use of it!
Benefits for e-commerce
With DSAs, e-commerce advertisers can:
- Advertise an extensive product portfolio at scale with TikTok Ads templates which save the cost and expense of creating thousands of individual ads manually.
- Create highly personalized content that can blend out easily in between creators’ content.
- Target customers have shown interest in products across platforms and devices.
How does it work?
The product feed is the foundation of dynamic showcase ads. This data file provides all of the information about your product. To make DSAs as efficient as possible, you must make sure that this feed is updated frequently and improved.
The final ad is created by using the product information that is pulled from the product feed by the ad template in TikTok’s Ads Manager. Two categories of audiences chosen for DSAs are potential customers and retargeting audiences.
Brands using TikTok DSAs
Aerie – a women’s activewear, intimates, and swimwear brand of American Eagle Outfitters, had experienced remarkable success with products that went viral on TikTok, most notably its Crossover Leggings. Aerie was one of the first mass merchants to activate Dynamic Showcase Ads (DSA) through the app in order to take advantage of TikTok’s engaged audience. The conversion rate for Aerie’s initial DSA campaign was 0.94%, but after using the unique DSA template, it more than tripled to 2.93%.
@aerie HOLD UP! You need these leggings ? #leggingmusthaves #outfitoftheday #gotitfromaerie ♬ Kyoto Flow – Official Sound Studio
3. Shopping Ads
What are TikTok Shopping Ads?
With Shopping Ads, marketers can reach consumers wherever they are in the buying process, generating demand and increasing sales.
TikTok Shopping Ads are divided into 3 types: Video Shopping Ads, Catalog Listing Ads, and LIVE Shopping Ads.
Video Shopping Ads
Video Shopping ads are the combination of both Collection ads and Dynamic Showcase ads’ features. Advertisers will be able to showcase products by using Video Shopping Ads, which will be shown on the For You page.
Shopping ads offer a dynamic experience dependent on the buyer’s desire. Therefore, it can either show a brand message leading to a landing page or a specific product to increase sales.
Catalog Listing Ads
Using Catalog Listing Ads, brands can increase their reach and display their product catalogs across the app. Advertisers can also promote their goods on shoppable surfaces like “Related Products” or “Recommended Products.” However, this feature is only being tested in the U.S market.
>>> Learn more: How to Find Trending Products on TikTok to boost sale potential
Catalog listing ads use product photos from a retailer’s catalog to advertise products in shoppable placements rather than videos, which will be shown in Branded content on the For You page.
LIVE Shopping Ads
LIVE Shopping Ads allow advertisers to lead consumers to their live event from the For You page so they can attend and make purchases. This feature is only available with TikTok Shop feature which is in the UK, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
Benefits for e-commerce
TikTok Shopping Ads has helped advertisers to:
- Simplified media buying process with easy access in TikTok Ads Manager’s Product Sales
- Expand your product inventory with different formats to take advantage of new trends and more TikTok placements outside of the For You Page.
- Reach consumers who are more likely to convert with smarter, more sophisticated targeting and completely automated creative elements.
- Maximize sale performance and optimization options.
Shopping Ads are now added to the e-commerce pack that was introduced in 2021. More specifically, LIVE Shopping Ads boost live stream traffic, connect quality audiences to live events to increase purchase intent, and initiate checkouts.
While Video Shopping Ads help advertisers sell better through TikTok Shop by leveraging short-form videos and product cards, you can use Catalog Listing Ads to easily promote your product catalog without the need to use videos.
How does it work?
Because TikTok Shopping Ads are still under testing and are also accessible through the TikTok Agency account, advertisers can connect with a TikTok agency like Mega Digital to gain access to Shopping Ads with all of its features and advice from the agency.
Members of our TikTok Ad Agency will be given the authorization to advertise using TikTok Shop and TikTok’s Profile content in the ads. Then, just as with any other ad campaign, advertisers may access and set up Shopping Ads in the Shop Purchases advertising objectives.
4. TikTok Carousel Ads
What are TikTok Carousel Ads?
Carousel Ads is also one of the most effective ads for the e-commerce market. Advertisers can use this ad style to share up to 10 photos with individual captions. For advertisers, this ad style offers a clean canvas on which to unleash their creativity. However, running images is not as effective as other forms of video ads; instead, they will be ideal for returning customers or retargeting purposes.
Benefits for e-commerce
Carousel Ads can help e-commerce marketers to:
- Tell Brand Stories with the use of images and captions in each frame of the carousel to create a narrative.
- Use the carousel as a virtual catalog by featuring a different product on each image, which links to a separate landing page.
- Show Product Details and highlight key product information.
How does it work?
You can advertise up to ten photos with TikTok carousel ads. It operates by having viewers swipe from left to right to view the next image in the carousel when they come across a carousel advertisement and appear interested in it.
Each image in the carousel advertisement has its own caption, so you could add it individually. This will help consumers to view a bunch of products while also being able to get the key point in each of them.
For full TikTok Ad Types and how to use them in alignment with your campaign’s objective, save our ebook and start seeing results right away!
Mega Digital’s tips for sellers: How to maximize sales performance from TikTok Ads
Mega Digital is a pioneer in leveraging TikTok’s immense potential for e-commerce growth. For sellers aspiring to thrive in this dynamic landscape, Mega Digital offers a treasure trove of tips and tricks honed through experience and expertise.
Utilize the right ad format
Different formats serve different purposes, and choosing the wrong one could limit your results. For example, if you’re promoting a broad range of products, Dynamic Showcase Ads (DSAs) are a great option. These allow you to automatically display personalized product selections based on user interests.
If you’re trying to tell a product story, highlight features, or guide users through a tutorial, Carousel Ads are your go-to. You can upload up to 10 swipeable images or videos, each with its own caption. But remember to switch to a TikTok Agency account for unlimited access to advertising options and cross-border opportunities.
Optimize for Mobile
TikTok is 100% mobile-native, so your website and checkout process need to be mobile-friendly too. If your landing pages are slow to load, hard to navigate, or not responsive, you’ll lose potential customers fast.
Here’s what you should do:
- Use clean, fast-loading product pages
- Avoid unnecessary redirects or form fields
- Highlight your CTA clearly above the fold
Better yet, if you sell through TikTok Shop, your customers can check out directly within the app, removing even more friction.
Incorporate User-Generated Content (UGC)
Today’s buyers trust people more than brands, which is why User-Generated Content (UGC) has become one of the most powerful tools in e-commerce marketing. Encourage your real customers or creators to post videos using your product.
Then, use TikTok Spark Ads to turn those organic posts into scalable ad content. Since the videos appear native and retain all their original engagement (likes, comments, shares), they tend to perform much better than traditional ads.
If you’re not sure where to start, just reach out to micro-influencers or run a product giveaway in exchange for authentic content.
Data-Driven Decision Making
Once your ads are live, the real work begins, and this is where you can start to scale. Instead of relying on gut instinct or creative guesswork, let your data lead the way.
TikTok gives you access to powerful tools like Ads Manager and the Creative Center, which show you exactly what’s working and what’s not. You’ll want to review this regularly so you can optimize your performance.
Here’s what you should pay close attention to:
- Hook Rate: How many users are watching beyond the first 3 seconds? This tells you if your opening is strong enough.
- Watch-through Rate: Are people sticking around until the end of the video? If not, maybe it’s too long or not engaging enough.
- Click-Through Rate (CTR): Are your viewers taking action? If this is low, your CTA or creative might need work.
- Conversion Rate (CVR): Are clicks turning into purchases? If not, it could be an issue with your landing page or offer.
Here’s what to do next: Test small changes, like tweaking your hook, changing the CTA, or switching up your visuals. Then compare results and double down on what’s delivering. Don’t hesitate to pause underperforming ads to reallocate budget to high-performers.
Consistent Interaction
TikTok isn’t just a platform for broadcasting ads; it’s a space for building relationships. And if you want people to care about your brand, you need to show up. So, don’t just post your ads and disappear. Instead, interact with your audience consistently. A little engagement can go a long way toward building trust and increasing conversions.
Here’s how you can stay active:
- Reply to comments on your ads or organic posts. Even a simple “thank you” shows that there’s a real person behind the brand.
- Acknowledge creators or customers who feature your product in their content. This not only boosts visibility but also encourages more UGC.
- Respond to DMs or product questions promptly. Many TikTok users make purchase decisions based on how responsive a brand is.
Over time, this kind of engagement helps you create a loyal customer base, not just one-time buyers. When people feel heard, they’re more likely to come back, recommend your store, and even create content for you.
So, if you’re serious about building a community around your e-commerce brand, make sure your presence is more than just ads, make it personal, consistent, and genuine.
Clear Call-to-Actions (CTAs)
At the end of the day, even the most entertaining or visually stunning TikTok ad won’t convert if it doesn’t tell people what to do next. That’s where your Call-to-Action (CTA) comes in—and it’s one of the simplest yet most powerful tools you have.
Your CTA should be:
- Clear: Users shouldn’t have to guess what you want them to do.
- Compelling: Use action-oriented language that creates urgency or curiosity.
- Consistent: Reinforce your message throughout the ad—from voiceover to visuals to caption.
Depending on what you’re trying to achieve, your CTA could be:
- “Shop Now” — Ideal for product launches or flash sales
- “Tap to Learn More” — Great for awareness or consideration-stage content
- “Join the Challenge” — Perfect if you’re promoting a branded hashtag or UGC campaign
- “Buy on TikTok Shop” — Best for direct conversions using TikTok Shop integration
Don’t just add your CTA at the end of the video; layer it throughout. Use text overlays in the first 3 seconds, reinforce it in the script, and include it in your video caption. This ensures your message sticks, even if users don’t watch the full ad.
>>> Read more: TikTok Dropshipping 101: Agency’s guide for beginners [2025]
Final Word
If you’re serious about growing your e-commerce business, TikTok isn’t just worth trying—it’s where you need to be. With the right ad formats, engaging content, and a little strategy, you can turn casual viewers into real customers.
And you don’t have to figure it out alone. At Mega Digital, we help brands like yours make the most of TikTok Ads—from setup to scale.
