TikToks Latest AR Ads Seek New Audiences

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TikToks Latest AR Ads Seek New Audiences

TikTok product developers hustle to roll out a new augmented reality brand effect to compete with Snapchat and Instagram.

 

TikTok is getting ready to launch a new ad feature to level the playing field with Snapchat and Instagram. The unofficially named “AR brand effect” will allow TikTok users to incorporate augmented reality brand advertisements in their videos. The ads will create visual effects that interact with the filmmakers’ physical environment as if it exists in real life. The ads will include music that can be played over the film.

 

TikTok also offers an ad product called Brand Effect, a 2D advertisement filter that users can add to their videos. The in-house product development team at TikTok created this feature for a reported cost of $100,000 according to Digiday.

 

Snapchat already has its AR brand experiences called the Sponsored Lens and Word Lens, which allow brands to create augmented reality filters to advertise via Snapchat’s users and their interactions with friends.

 

Snapchat charges anywhere from $50 to $500,000 for augmented reality advertisements. The lower tier starts with a 10-second ad between videos that users can choose to “swipe up” and interact with. The higher tiers get advertisers a day-long spot with a Sponsored Lens.

 

Though the efficacy of this advertising strategy appears to be hit-or-miss, the creative opportunities for advertising to a wide audience is attractive enough to keep this product development relevant. TikTok and its Chinese counterpart Douyin clocked in two billion downloads in the month of March. Its users skew young with 41% between the ages of 16 and 24, and its global following boasts 800 million users worldwide.

 

TikTok is moving with adept agility to roll out new products to keep its increasingly large user base engaged. “They are doing it a lot quicker [than competitor social media platforms],” media agency Starcom told Digiday. “Their ability to scale and move forward is frightening, really. If they get it right they’re going to be a huge player in the next six months to a year.”

 

TikTok is also working on new ad products that allow advertisers to connect with prominent influencers. With the future of stay-at-home orders looking to turn into an interminable cycle, it will be telling to understand how these advertising strategies will effect e-commerce and digital brand experiences.

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