TikTok launches travel advertising solution

Social media giant TikTok is launching an advertising solution tailored to the travel industry called Travel Ads, driven by Smart+. The solution, which incorporates artificial intelligence (AI) elements, is TikTok’s first ad format built with travel in mind.

TikTok’s Travel Ads connect users with hotel, destination, flight and cruise offers as they explore travel content on the platform.

The launch comes after testing by brands including Accor, Melia, Expedia Group and Etihad that showed positive results.

"Travel on TikTok goes beyond the For You feed, unlocking real-life travel experiences,” said David Hoctor, head of U.S. verticals, travel and gaming at TikTok. “With TikTok Travel Ads, advertisers can leverage dynamic ad creatives and travel-first intent signals to seamlessly guide the TikTok community from discovery to booking—making every swipe a step toward conversion."

TikTok has been exploring how to incorporate travel marketing on its platform with other partners such as Booking.com, which enabled in-app bookings, among other opportunities.

These moves come as social media becomes increasingly relevant in the booking journey. Phocuswright research found that almost two thirds of travelers who use social media for trip planning followed through with a trip purchase or decision based on content they consumed. 

How TikTok’s Travel Ads work

TikTok said it is incorporating travel specific optimization models meant to identify audiences that are ready to book. Then, Travel Ads matches those users with relevant offers.

Advertisers can choose from a few different creative options. 

First is a “Single Video,” which includes a hero video that is shoppable with “personalized travel cards” including details such as hotel name, destination, price or flight path. Up to 10 travel cards can be generated from the travel catalog to be overlaid on the video, and users are redirected to product links on travel cards when they click. 

Second is “Catalog Video,” which will be built off catalog content to be paired with travel cards that include calls to action meant to promote a destination, property or experience. Cards appear two seconds after initial play and can be clicked to reach the product featured as in the “Single Video” format. 

And third, the “Catalog Carousel” option offers a scrollable carousel that draws images from a catalog and makes them into ads that are interactive, including a “strong call to action.” Each image will include a clickable product tag that was created from the catalog that will lead directly to the product link.

TikTok shared results from brands that have used the tool. 

Accor saw a 9% bump in return on ad spend (ROAS), a 17% decrease in cost per complete payment and a 54% decrease in cost per click. 

Melia saw a 156% boost in ROAS versus web conversions in Spain, a 178% uptick in ROAS versus web conversions in the U.S. and 291% bump in ROAS versus web conversions in the U.K. 

And Etihad reportedly saw a 7% lift in flight search, a 17% bump in flight bookings and a $232 increase in ROAS per booking. 

Expedia Group is also using Travel Ads. Jochen Koedjik, chief marketing officer for the company, which has explored other social media initiatives to drive bookings such as Expedia Trip Matching, called TikTok a “go-to destination” for travelers seeking a new adventure.

“With Travel Ads, we’re meeting them in those key moments with inspiring and relevant content across Expedia, Vrbo and Hotels.com,” Koedijk said. “It makes it easier for our travelers to find exactly what they’re looking for, while our brands see real and measurable impact." 

TikTok deal approved in executive order 

The social media platform’s launch of its ad solution comes days after President Donald Trump signed an executive order Thursday to approve a deal that will allow TikTok to remain active in the U.S.

The deal’s terms outline that a joint-venture company would provide oversight of TikTok’s business in the U.S. with TikTok's parent company ByteDance, which was founded by Chinese entrepreneurs, holding under 20% of its stock, according to CNBC.

CNBC reported the main investors in TikTok’s business in the U.S. include Oracle, Silver Lake and MGX investment fund, which is based in Abu Dhabi. Together, they are set to control 45%. ByteDance investors and new stakeholders will have 35%.

China has not yet approved the deal, which would allow the platform to continue to operate in the U.S., doing away with a federal ban that has been discussed and delayed multiple times.