Tech Desk 
Oct 08, 2024
TikTok has launched Smart+, an AI-driven tool for advertising, to boost ad revenue and close the gap with Meta. This significant step aims to increase ad revenue and compete with Meta's Advantage+ and Google's Performance Max.
However, Smart+ uses full-fledged automation of ad-buying process processes from creative development to targeting optimisation.
TikTok Smart+ lets marketers let TikTok AI create and deliver ads or take control at the key stages of ad creation or delivery.
For instance, marketers can utilize Smart+ to create and optimize ads and then choose whether to manage campaigns themselves or hand over control to the AI.
Read more: ChatGPT unveils Canvas to streamline writing and coding
The Smart+ has already shown early promises. Ray-Ban’s beta Smart+ campaign saw a 50% reduction in cost per acquisition, a 47% lift in conversion rates, and a 42% lift in return on investment.
On average advertisers optimising for value with Smart+ web campaigns improve return on ad spend by 53%.
TikTok aims to become a competitive player in advertising, targeting privacy-enhancing technologies, data clean rooms, and trusted execution environments in the tech market.
TikTok still hasn't caught up to Meta, as its worldwide ad revenue sits at a projected $22.32 billion by the end of 2024.
Yet, the growth rate is impressive; the ad revenue is expected to increase by 27.3% by 2025, reaching $28.42 billion.
