New research cracks the code on selling power of TikTok video ads
Even though the future of TikTok in the U.S. hangs in the balance, a groundbreaking in the journal Marketing Science introduces a game-changing algorithm that predicts which TikTok ads will drive sales before they even go live.
The study, "Engagement that Sells: Influencer Video Advertising on TikTok," reveals how artificial intelligence can identify which influencer ads will convert viewers into buyers, giving brands a powerful tool to maximize their marketing investments.
"We found that many popular TikTok ads fail to boost sales because influencers often prioritize their personal brand over the products they promote. To solve this, we developed the 'product engagement score,' a computer vision-powered metric far more accurate than traditional methods like video likes or influencer popularity," says Juanjuan Zhang, one of the study's authors and a professor at the Massachusetts Institute of Technology. "This tool answers the critical question for brands: which ads will drive sales?"
Already productized through MIT's Technology Licensing Office, this breakthrough is poised to reshape influencer marketing by enabling brands to optimize ad spending, improve influencer collaborations and reduce costly trial-and-error approaches.
Powered by a cutting-edge computer vision algorithm, the product engagement score predicts sales impact more effectively than video popularity, influencer status or ad budget. By leveraging this tool, brands can determine which ads will resonate with consumers before they are launched, leading to better resource allocation and stronger return on investment.
"Content production is becoming easier and cheaper thanks to AI, but that means evaluation is more important than ever," says Jeremy Yang, one of the authors and an assistant professor at Harvard University. "Brands can now ask themselves, 'I can make a hundred video ads, but which ones will drive sales?' Our method provides that answer."
This research has already begun transforming how companies approach digital advertising. Brands can use the algorithm to predict ad performance, refine influencer partnerships and foster greater transparency between advertisers, content creators and platforms.
"This innovation not only reshapes how brands approach video advertising, but also empowers influencers to design more effective content. As the creator economy continues to grow, tools like the product engagement score could redefine the rules of social media marketing," concludes Yang.
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More information: Jeremy Yang et al, Engagement That Sells: Influencer Video Advertising on TikTok, Marketing Science (2024).
Journal information: Marketing Science