TikTok has announced the general availability of its Automotive Ads, a catalog-based solution designed specifically for vehicle promotions. 

The new offering aims to address challenges automotive advertisers face, including lengthy buyer journeys and the need for personalized marketing across various touchpoints.

“With almost 1 in 3 TikTok users in-market for a new vehicle, Automotive Ads are the perfect way for the industry to build an experience to reach users with the right content, the right product, at the right time,” Ahmed Iqbal, Head of Industry U.S. Automotive at TikTok, said in a blog post, positioning these specialized ad formats as a strategic channel for automotive brands seeking to connect national, regional, and local marketing strategies.

Source: TikTok

Two Formats Target Different Automotive Segments

TikTok’s Automotive Ads come in two distinct types: Inventory Ads and Model Ads. 

Inventory Ads promote individual VINs and are primarily designed for dealerships and marketplaces, while Model Ads showcase specific models, trims, and offers, targeting original equipment manufacturers (OEMs).

Both formats are available in two creative implementations: Video + Product Card, which pairs video content with shoppable product recommendations from the advertiser’s catalog, and Multi-link Carousel Card, which uses catalog images mapped to unique URL destinations without requiring video assets.

Performance Data Shows Cost Improvements

Early testing data indicates cost efficiencies for automotive advertisers. According to TikTok, auto advertisers using Inventory Ads observed a 41% lower cost per acquisition (CPA) and 51% lower Last-Click CPA compared to other TikTok shopping formats.

OEMs testing the Automotive Ads solution reported an average CPA improvement exceeding 40% after one month of implementation, with all test participants experiencing significant positive performance compared to their non-Automotive Ads campaigns.

Peugeot, an early adopter, reports a 95% improvement in cost per engaged session (CPES) compared to benchmarks. Zoe Peacock, Head of Brand Communications & Experience at Peugeot UK, noted, “TikTok was the leading platform in optimizing CPES, our primary KPI.”

On the dealership side, Turnkey Marketing shares similar positive results. Drake Baerresen, VP of Sales & CMO, described the solution as “a game-changer for dealerships” that puts “clients’ prized inventory in front of in-market car shoppers who are not using other social platforms.”

The platform’s Automotive Ads leverage advertisers’ catalogs and website event signals to deliver personalized user experiences. TikTok recommends implementing at least three Web Lead Gen events for optimal performance, with View Content being essential. Parameters such as content_id, make, and model help inform the platform’s targeting models.

TikTok’s solution comes right after Meta and the Federation of Automobile Dealers Associations (FADA) released research revealing that 72% of new automotive buyers in India discover car brands and models through Meta’s platforms, signaling a shift in how consumers research vehicles before purchasing. Nearly 70% of surveyed buyers said Meta platforms influenced their purchase decisions.