TikTok has recently introduced an AI-driven advertising purchase tool named Smart+. This tool aims to streamline the ad buying process, automating all operations from creative development to targeting and optimization.
Smart+ is TikTok's response to Google's Performance Max and Meta's Advantage+. It utilizes artificial intelligence to handle the heavy lifting, such as creating and placing ads, to drive conversions, leads, or app downloads.
However, Smart+ also offers the flexibility to selectively use its features. Marketers can leverage the tool to create and optimize ads, then choose whether to manage the campaigns themselves or hand over control to the AI.
Adolfo Fernandez, a TikTok executive, stated that the focus of the promotion is simplicity and speed. With Smart+, advertisers can expect quick wins with less hassle. The creative process is no exception; Smart+ is linked with TikTok's another AI tool, Symphony, which is designed to help marketers generate and refine ad concepts.
According to TikTok, advertisers using Smart+ have seen an average increase of 53% in return on ad spend. Ray-Ban serves as an example, with a Smart+ test campaign this summer, which resulted in a 50% reduction in cost per acquisition compared to campaigns that did not use the tool.
TikTok hopes that Smart+ will attract a specific type of marketer who has shied away from TikTok, unsure if the platform can deliver faster results. Smart+ is TikTok's way to entice them. If successful, it could reshape TikTok's advertising business, making smaller advertisers the foundation of its growth.
However, bridging this gap is not easy. TikTok's advertising business still needs to catch up with Meta. According to eMarketer's predictions, by the end of this year, TikTok's global ad revenue is expected to reach $22.32 billion, growing by 27.3% to $28.42 billion by the end of 2025. In contrast, Meta's global ad revenue is projected to reach $154.16 billion, growing by 23.2% to $173.92 billion by the end of 2025.
