Key Trends, Challenges and Opportunities
TikTok continued to be a dominant force in social media advertising throughout 2025, with brands deepening their investment in the platform to engage consumers in new and creative ways. TikTok’s hybrid role as both a social media network and commerce ecosystem means advertisers are now integrating entertainment, community engagement, and direct sales into a cohesive approach.
Key trends shaping TikTok advertising in 2025 and expected to continue in 2026 include:
- AI-Driven Personalisation
- Shoppable Content and Social Commerce Dominance
- New advertising formats
- Creator-led and authentic content forms
- Advanced analytics tools for advertisers
Despite strong growth, challenges remain. Regulatory scrutiny over ad transparency and data privacy continues in key markets like the EU.
Additionally, users’ purchasing behaviour within TikTok can lean toward impulse buying, raising questions about long-term consumer satisfaction and brand trust.
AI-Driven Content and Algorithm Evolution
TikTok’s algorithm is still one of its strongest assets, and in 2025 it got even smarter. With more advanced AI tools now in place, the platform goes beyond simply suggesting content; it helps brands shape campaigns that feel relevant from the first second.
These updates mean advertisers can now adjust content based on audience behaviour at different stages of the customer journey. From smarter targeting
to dynamic creative optimisation, AI is quietly doing the heavy lifting behind high-performing TikTok ads.
Looking ahead to 2026, brands that use AI to guide their creative and targeting decisions will be best positioned to stand out in a crowded feed.
TikTok Shop and Social Commerce Dominance
TikTok Shop saw rapid growth in 2025, as brands leaned into live shopping events, product drops, and seamless in-app purchases. It’s clear that TikTok is no longer just a place for discovery; it’s now a serious sales channel.
The rise of social commerce has changed how users shop, particularly among younger audiences. Instead of heading straight to search engines, they’re discovering and buying products directly within social platforms, often influenced by content from creators they trust.
“We’re watching the lines blur between entertainment and eCommerce,” says Olivia Reynolds, Marketing Executive at ExtraDigital. “TikTok Shop is a clear example of how quickly buying habits are changing. Even if a brand isn’t active there yet, it’s worth paying attention to the shift.”
With social commerce expected to make up a growing share of global online sales by 2026, brands that adapt early to these new behaviours will likely have the advantage.
New Advertising Formats and Innovations
2025 saw several new ad innovations designed to improve performance and creative flexibility:
- Advanced analytics dashboards for segmenting audiences based on buying cycle stages.
- AI-powered creative tools that help generate personalised video ads at scale.
- Shoppable ad formats and catalogue ads integrating product feeds directly into content.
These developments give advertisers more ways to connect discovery with conversion than ever before.
Creator Led and Authentic Content Forms Influencer marketing on TikTok has evolved in 2025, with brands leaning more towards micro-influencers and user-generated content (UGC). These approaches consistently outperform traditional, polished ads, mainly because audiences value real voices over overly scripted messaging.
In fact, HubSpot’s 2025 Social Media Trends report found that TikTok ads featuring UGC saw 35% higher engagement and 28% better conversion rates than brand-created videos.
Micro-influencers tend to have tighter-knit communities and higher trust levels. Pairing their content with UGC helps brands connect in a more personal, authentic way, and that’s exactly what performs on TikTok.
Regulatory Scrutiny and Data Privacy Developments
Regulatory pressure on TikTok’s ad transparency and data practices continued across 2025, particularly in the EU, where authorities cited gaps in TikTok’s compliance with digital advertisement disclosure rules.
Brands operating on TikTok must stay informed about evolving privacy regulations and platform transparency requirements to avoid compliance risks and protect user trust.
The Future of TikTok Marketing in 2026
Looking ahead to 2026, TikTok advertising will continue to evolve across several key dimensions:
- TikTok as a search and discovery engine – users increasingly rely on TikTok to discover products and ideas, not just entertainment.
- Social commerce hitting new milestones with global sales expectations rising sharply.
- Integration of AI across creative, targeting, and optimisation, enabling smarter automation and real-time adaptation.
- Greater focus on authenticity and community, with micro-influencers and UGC playing a central role in engagement and trust.
Key Strategies for Brands in 2026
- Assess how TikTok Shop fits within your e-commerce ecosystem
- Prioritise authentic creator partnerships
- Leverage AI tools for creative and campaign optimisation
- Track performance with advanced analytics
- Keep content adaptive and aligned with cultural moments
Final Thoughts
TikTok’s advertising landscape continues to evolve rapidly. What began as short-form video marketing has become a sophisticated ecosystem combining discovery, engagement, and commerce. By embracing AI, creator-led content, data-driven insights, and shoppable experiences, brands can stay ahead of the curve as we head into 2026.
If you’re thinking about how TikTok fits into your marketing strategy for 2026, get in touch. We’d be happy to help you find the right approach.
Frequently Asked Questions
What will be the biggest TikTok advertising trends in 2026?
The biggest TikTok advertising trends in 2026 are expected to include AI-driven personalisation, the continued rise of shoppable content through TikTok Shop, new interactive ad formats, increased use of creator-led content, and more advanced analytics to guide optimisation and decision-making.
How is AI changing TikTok ads and targeting in 2026?
AI is reshaping TikTok advertising by allowing brands to personalise creative and targeting based on audience behaviour at different stages of the customer journey. This includes smarter targeting, dynamic creative optimisation, and faster campaign adjustments using real-time performance data—an approach agencies like ExtraDigital are already helping brands adopt.
Is TikTok Shop worth using as a sales channel in 2026?
For many brands, TikTok Shop is becoming a valuable sales channel. As users increasingly discover and purchase products directly within the app, features like live shopping, product drops, and shoppable ads are helping shorten the path from discovery to conversion, particularly among younger audiences.
Do creator-led ads and UGC perform better than polished brand videos on TikTok?
In many cases, yes. Creator-led ads and user-generated content often perform better because they feel more authentic and relatable. Research cited in the text shows that UGC-style TikTok ads achieved higher engagement and conversion rates than traditional brand-created videos, reinforcing the importance of authenticity.
What should brands consider before investing more heavily in TikTok advertising?
Brands should consider regulatory requirements around ad transparency and data privacy, the impact of impulse-driven purchases on long-term brand trust, and how TikTok fits into their wider marketing and e-commerce strategy. Working with experienced partners such as ExtraDigital can help brands balance opportunity with risk as the platform continues to evolve.
