Just as TikTok sets forth with plans to expand its e-commerce capabilities in the U.S., new data show a decelerating growth rate for the app—and an article from TechCrunch looks into whether the platform’s shopping aspirations are to blame.
The number of active users on TikTok increased an average 3% per quarter year-over-year in 2023, a significant drop from the 2022 growth rate of 12%.
While TikTok aims to take advantage of the product-heavy conversation among users (with obvious dreams of monetizing the #TikTokMadeMeBuyIt movement), even creators who profit from the app are complaining. According to an article that refers to TikTok as an “ad-filled wasteland” and “dystopian,” some users say that TikTok Shop ads are running rampant (and seemingly not targeted well) and that that their feeds are becoming overwhelmed with ads, and they lament the old scrolling experience when they weren’t being sold something at every turn.
In addition, there are Reddit threads pondering whether TikTok Shop has ruined the app completely. And in a post that garnered a lot of comments in agreement, one TikTok user said too much advertising was the reason she had left Instagram (which introduced an affiliate marketing program in 2021 but has since removed its “shop” tab after negative user feedback and poor performance).
TikTokers who have complained about advertising proliferation do acknowledge the benefits of TikTok Shop for sellers and seem open to it being a part of the app—they just don’t want to be beaten over the head with it. And TechCrunch reported that data indicates “robust” growth last year in the TikTok Shop Seller app, which powers its e-commerce initiative.
This, at the very least, shows that TikTok’s e-commerce efforts are not a complete failure. Users apparently have plenty of interest in selling; it’s the buying part that the app seems to be struggling with. TikTok probably won’t get a grip on the problem if it continues to pound users with ads.
(photo: Getty Images)
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