TikTok Launches AI-Driven System to Boost In-App Shopping

TikTok is intensifying its e-commerce efforts in the U.K. with the introduction of GMV Max, an AI-powered tool designed to streamline and optimize in-app product advertising. The feature, available through TikTok Shop, promises to automate key aspects of ad campaigns, from audience targeting to creative selection, aiming to drive sales efficiently for sellers on the platform.

As TikTok explains, GMV Max enables sellers to create campaigns effortlessly, with the system identifying and scaling high-performing assets to maximize gross merchandise value (GMV). The platform emphasizes that the tool is designed to achieve incremental GMV growth while maintaining a stable GMV-to-ad-spend ratio.

This initiative aligns with TikTok’s broader strategy to grow its in-app shopping ecosystem, building on the platform’s significant success in China, where Douyin (the local version of TikTok) facilitates over $500 billion in annual sales. While Western markets have been slower to embrace in-app shopping, TikTok’s efforts in the U.K. are beginning to show promise.

Currently, TikTok Shop hosts more than 200,000 active small businesses in the U.K., supporting over 6,000 live shopping sessions daily. The platform has also emerged as the second-largest online beauty and wellness retailer in the region, underscoring its growing influence in e-commerce.

By introducing GMV Max, TikTok aims to lower barriers for businesses looking to leverage its shopping tools, offering an end-to-end advertising solution that could entice more sellers to adopt in-app commerce. As TikTok continues to refine its e-commerce features, the potential for growth is substantial, especially if Western markets start to mirror the massive adoption seen in China.