ACV facts & figures
TikTok is the go-to social media platform today, particularly among younger audiences. In February, they introduced a new paid automotive ads feature specifically for automotive advertisers. The ad formats are similar to Facebook and Google Inventory ads that actually allow you to link your website's vehicle inventory so users on TikTok can see what you have available and click on a link. But how do they work and how can you use them? In this article, we’ll explore what they are, how they function, and what the upside can be when you use this new ad type.
The Advertising Landscape and TikTok’s New Initiative
Auto advertisers have faced marketing challenges, including a long buyer’s journey, a need for personalization, maintaining engagement across channels, and diminishing returns for ad spend, according to TikTok. Plus, with consumers doing more of their shopping online, digital marketing campaigns have to be even more efficient, effective, and personal.
These changes prompted TikTok to launch Automotive Ads in February, which they describe as “our new catalog-based solution crafted to enhance vehicle promotions and drive car sales effectively.”1 These ads are promoted as being easy to set up, highly optimized, and especially effective for brands’ ROI.1
What Are TikTok Automotive Ads?
The ads are similar to other performance-based formats from Google and Facebook, which provide listings and links to sites for consumers to shop, only these ads are geared toward the auto industry.2 TikTok describes the new Automotive Ads as a performance ad feature that allows advertisers to target users with high-intent to buy.3
These ads are catalog-based and match your models, offers, or inventory—and they’re shown to users based on their in-market activity and preferences.
The ads are available in two creative formats:
Video with product card: Lets brands use a video in combination with a personalized product recommendation
Multi-link carousel card: Upload your catalog so you can feature a number of images of products from your website3
There are also two types of these Automotive Ads:
Inventory Ads: Allow dealers to promote individual vehicles
Model Ads: Allow manufacturers to promote specific models and trims3
All these Automotive Ad types will allow brands to set their budget to drive leads to the target audience.
What Are the Benefits of TikTok’s New Automotive Ads?
These new ads allow dealers and manufacturers to launch full campaigns that connect strategies at a local and global level. The opportunity is sizable, as TikTok noted over a third of their users are looking for a vehicle—used or new.2
For example, Mercedes-Benz created an ad with a CTA to “check availability” and a link where customers could browse their site and find preowned vehicles. Similarly, another ad was posted from a specific Dodge dealership with a link to shop now from their inventory.
TikTok brings about a fresh ability for automakers to reach younger audiences and make a cultural impact. TikTok also reported that the ads led to 78% higher click-through rates for customers engaging with the ads compared to previous formats. This brings a unification between manufacturers’ brand and performance marketing efforts. This advertising type also brings TikTok users a more transactional experience rather than just a brand awareness advertising experience.2
For example, Peugeot saw their new Automotive Ads leading other platforms for their campaigns in terms of cost per engaged session, making it a more efficient and effective marketing tool than other existing options.3
How Do Automotive Ads Work?
“Automotive Ads leverage your catalog and website event signals to deliver a dynamic user experience based on their observed preferences,” according to TikTok. Dealers can upload vehicle catalogs and connect to Web Lead Gen events and parameters so TikTok delivers the ad to the best possible audience. Selecting the ad type ensures that when your customers see an ad, they will be directed to the correct URL destination.1
How Will Your Prospects Interact With Automotive Ads?
When a user sees an Automotive Ad, they will click on the featured catalog item, which takes them to a mapped URL destination. If they keep looking, they will land on a TikTok Instant Page where they can look at the full inventory of options, without leaving the app.3
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Sources
- TikTok. 2025. “Introducing TikTok Automotive Ads.” TikTok for Business. Retrieved March 5, 2025. https://ads.tiktok.com/business/en-US/blog/automotive-marketing-101?acq_banner_version=73412989
- Sloane, Garett. 2025. “TikTok’s new auto ads – what car brands and dealerships should know.” Automotive News. https://www.autonews.com/retail/marketing/an-tiktok-auto-ads-0219/
- Cohen, David. 2025. “TikTok Launches Automotive Ads Even as Its Future In the US Remains Uncertain.” Adweek. https://www.adweek.com/social-marketing/tiktok-launches-automotive-ads/
