Facing the same declines in digital advertising faced by its rivals Meta and Snap, social media platform TikTok has reportedly made several changes in the leadership of its operations in the United States, which is its biggest market.
The restructuring comes as the company is working to become less reliant on advertising by adding gaming, live shopping and other new features, the Financial Times reported Tuesday (Nov. 8).
As part of the restructuring, TikTok has transferred North American General Manager Sandie Hawkins to become head of its eCommerce channel, TikTok Shop in the U.S., according to the report, which cited unnamed sources.
Blake Chandlee, global business solutions head, will assume the role of North American general manager in the short term, the report stated.
Over the past four months, about 20 senior managers in the U.S. operations have been replaced with new leadership, per the report.
PYMNTS has reached out to TikTok for comment.
These changes come as the growth of spending for advertising on social media has dropped to a rate that is only about one-tenth of what it was a year ago, according to the report.
Looking for growth through additional features, TikTok is expanding eCommerce in the U.S., in part with the TikTok Shop, which allows users to buy products through its videos and live broadcasts, the report stated.
In August, TikTok introduced “Shopping Ads” and said these are designed to help brands “meet shoppers wherever they are in the purchase journey” to boost demand and sales.
These solutions enable brands to reach consumers with shoppable videos on users’ For You page, with the brand’s own LIVE moments and with placements of the brand’s product catalog across TikTok.
As PYMNTS reported at the time, these “Shopping Ads” are designed to blend content and commerce.
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