David Bridges
In the ongoing quest to enhance its revenue streams, TikTok is exploring innovative avenues, particularly in the realm of in-stream shopping. Recently, the platform has submitted several new trademark applications in the U.S., which may indicate a broader range of business offerings coming soon to the app.
According to a report from Semafor, TikTok has filed two new trademark applications in the United States, signaling its intentions to expand its services.
“One of the trademarks appears to be for an app called TikTok Go, which aims to promote a variety of sectors including restaurants, retail businesses, the travel industry, and various other online and offline enterprises.” This app promises to assist in creating effective marketing strategies, developing financial forecasts to assess marketing investments, and offering comprehensive marketing advisory services, among other important functions.”
The trademark submission clearly identifies this as a distinct application, though it may also be linked to the mini-app features that are a significant part of the Chinese variant of TikTok.
In Douyin, the Chinese counterpart of TikTok, third-party developers have the ability to integrate “Mini Programs”, which function as lightweight versions of their applications embedded within the broader Douyin framework.
These mini programs are conveniently accessed through the left-side function menu within the app, granting users a variety of options for food ordering, ride-hailing, ticket purchases, and more—all seamlessly integrated within Douyin itself. This design allows users to manage a majority of their daily transactions on a single platform, significantly enhancing user engagement and expanding behavioral patterns.
TikTok appears to be aiming for a similar trajectory, with the introduction of the TikTok Go program potentially offering a platform for third-party partners to develop their own mini-apps. These would be showcased within the TikTok environment, creating an enriched user experience.
The ultimate vision is to encourage users to engage in more activities within the app, thereby driving the expansion of TikTok’s ambitious in-stream shopping initiatives. This strategy is where the significant revenue potential lies. To put things into perspective, Douyin generated an impressive 0 billion from in-app sales in 2023, far surpassing TikTok’s current earnings.
TikTok is closely observing Douyin’s successful roadmap, and it seems likely that this initiative will serve as a means to further integrate shopping and purchasing activities directly within the app.
The second trademark application submitted by TikTok pertains to a buy-now-pay-later service named TikTok PayLater.
“TikTok has referenced a PayLater service on its website in the Philippines, allowing customers on its e-commerce platform, TikTok Shop, to divide their payments into manageable monthly installments.”
According to Semafor, the trademark filing hints that the U.S. version could encompass a wider range of functionalities, but at its core, it remains a payments program aimed at facilitating transactions directly within the app.
Whether TikTok will succeed in making in-app shopping a mainstream option remains uncertain. While expanded shopping opportunities, particularly live-stream shopping, have gained traction in Asian markets, Western consumers have shown a more cautious approach to these features.
However, consumer attitudes are gradually shifting over time. Trends indicate that younger demographics are increasingly receptive to in-app purchases. Yet, Western shoppers still tend to prefer using separate apps for different functions rather than adopting integrated payment and ordering features within social platforms.
While this dynamic could evolve, it’s likely to take some time. Regardless, TikTok is expected to persist in its efforts to enhance these features, aiming to boost its revenue potential significantly.
Maya Kensington
Clara Hastings
