Luxury Accessories
How Video Shopping Ads Delivered 3.8X ROAS for Luxury Accessories on TikTok
Breaking free from the Meta-Google duopoly with Video Shopping Ads and authentic content strategy
ROAS (58% increase YoY)
Conversion Rate (64% increase)
2023 Ad Investment
Background
Client & Context
A high-end accessories brand sought to escape the traditional Meta-Google advertising duopoly and find cost-effective sales through TikTok's evolving platform. The brand needed to prove TikTok could deliver luxury customer acquisition at scale beyond their existing paid media channels.
Sum Digital partnered with this luxury accessories brand on a two-year journey (2022-2023) to transform their TikTok marketing strategy—starting with a $1M test budget in 2022 and scaling to $3M in 2023 after proving the channel's effectiveness.
Challenge
The Problem
The brand faced three core challenges:
- •Escape the duopoly: Meta and Google dominated their paid media mix—they needed to diversify acquisition channels and reduce dependency on platforms with rising CPMs
- •Prove TikTok for luxury: TikTok was unproven for high-end accessories—needed to demonstrate the platform could deliver quality customers, not just viral views
- •Navigate rapid platform evolution: TikTok's advertising features evolved constantly—required staying ahead of new ad formats and campaign types while maintaining performance
Analysis
Our Diagnosis
We identified three strategic opportunities:
TikTok offered untapped luxury audience
While competitors dismissed TikTok as youth-focused, the platform's audience and purchasing power were maturing rapidly. Early adoption meant accessing high-intent luxury shoppers at lower CPMs than saturated Meta and Google channels.
First-mover advantage in luxury TikTok advertising.
Video Shopping Ads were the unlock
TikTok's new Video Shopping Ads (VSAs) made beautiful product videos instantly shoppable—combining the brand's strength in visual storytelling with frictionless commerce in a way traditional feed ads couldn't match.
Native commerce experience built for TikTok.
Agency support amplified results
Partnering with TikTok's Agency Strategy Team provided early access to beta features, detailed reporting, and campaign optimization support that maximized the platform's potential during rapid evolution.
Platform partnership accelerated learning curve.
Strategy
The Approach
We built a systematic expansion strategy—testing TikTok with Value-Based Optimization feed ads in 2022, then pivoting to Video Shopping Ads and retargeting in 2023 to unlock major efficiency gains.
Strategy
- • Validate TikTok with $1M test budget (2022)
- • Leverage TikTok Agency Strategy Team support
- • Shift from VBO feed ads to Video Shopping Ads
- • Build authentic organic presence alongside paid
Execution
- • Test new campaign types as platform evolved
- • Launch site user retargeting with VSAs
- • Scale budget to $3M based on proven results
- • Grow organic following to 368K (from 180K)
Execution
Key Changes
Pivoted from VBO feed ads to Video Shopping Ads
Mid-2023, we shifted from evergreen Value-Based Optimization feed ads to TikTok's Video Shopping Ads (VSAs)—making the brand's beautiful in-feed videos instantly shoppable. This drove a 30% ROAS increase and 10% stronger conversion rate compared to previous formats.
→ VSAs unlocked native commerce experience
Launched retargeting with Video Shopping Ads
Introduced site user retargeting campaigns using Video Shopping Ads format—bringing warm traffic back to convert with shoppable product videos. This strategy delivered 7+ ROAS throughout Q4, significantly outperforming prospecting campaigns.
→ Retargeting became highest-efficiency channel
Built authentic organic presence alongside paid
Cultivated genuine brand presence beyond paid ads—growing organic following from 180,000 to 368,000 through authentic content that resonated with TikTok users. Organic growth amplified paid performance and built community.
→ Paid and organic created compounding effect
Outcomes
Results
58% increase year-over-year from 2022 to 2023
Conversion rate increased 64% with Video Shopping Ads
Escaping the Meta-Google duopoly through strategic TikTok expansion—Video Shopping Ads and retargeting delivered 3.8X ROAS while building authentic community. Request a TikTok advertising audit to see if this strategy fits your brand.
Framework
Why This Worked
Early adoption creates competitive advantage
While competitors waited for TikTok to "mature," we moved early to capture luxury audiences at lower CPMs—proving the platform could deliver high-quality customers for premium products. First-movers win on emerging channels, as we've demonstrated across multiple brand transformations.
Native ad formats drive native performance
Video Shopping Ads worked because they matched how users experience TikTok—shoppable videos that felt native to the platform rather than disruptive ads. Format-platform fit determines success on new channels.
Platform partnerships accelerate learning
Working with TikTok's Agency Strategy Team provided beta access, detailed reporting, and optimization support—compressing the learning curve from months to weeks and unlocking features before they went public. This collaborative approach to senior-led paid media execution creates compounding advantages.
Authentic presence amplifies paid performance
Building organic community alongside paid campaigns created compounding effects—followers became customers, organic content informed paid creative, and brand authenticity improved ad receptivity on a platform that values genuine connection.
See how this applies to your brand
We'll audit your channel mix, identify TikTok opportunities, and show you how to scale profitably beyond Meta and Google without sacrificing ROAS.