Link: TikTok launches Smart+, a new AI-powered ad tool that competes with Google's Performance Max and Meta's Advantage+, automating ad targeting and optimization (Digiday)

Ivy Liu discusses TikTok's new AI-enabled ad-buying tool, Smart+, designed to streamline ad campaign management and foster liberal ad spending. It directly competes with Google’s Performance Max and Meta’s Advantage+.

Launching today, Smart+ autonomates the ad process from development to delivery, allowing marketers freedom at crucial stages. This approach provides flexibility unlike its competitors, letting marketers selectively use its features.

Despite benefits, Smart+'s opaque AI algorithms require significant trust, raising concerns over loss of control and insight. Yet, the promise of enhanced performance attracts many marketers.

Smart+ aims to quickly and efficiently revamp TikTok's ad landscape. Notably, during a beta phase, Ray-Ban saw a 50% reduction in acquisition costs and a notable ROI increase.

TikTok's VP Blake Chandlee believes Smart+ narrows the competitive gap with Meta, particularly in performance market products. Despite challenges, TikTok's ad revenue is poised to grow, reflecting its potential.

Moreover, TikTok is enhancing its broader business relationship with marketers by prioritizing long-term growth over immediate sales. Early tests show merchants experiencing a 30% increase in gross merchandise value with the new AI tool GMV Max. #

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