Emarketer
predicted that TikTok Shop will reach $23.41 billion in U.S. e-commerce sales in 2026, which is a 48% increase year over year. Brands are increasing investments to match that growth. Last year, TikTok Shop brought in $2.7 billion in video ad spend in the U.S., up from $1.4 billion in 2024, according to e-commerce intelligence platform Charm.io.
Social commerce platforms such as TikTok Shop have garnered brand interest because they offer advertisers space to roll out full-funnel marketing campaigns where Gen Z already spends much of its time, Allison said. He added that live shopping, in particular, gives brands an effective way to take users all the way through their funnel.
“It creates that moment in discovery that will allow brands to cut through, maintain attention, get wide exposure and then, ultimately, go from consideration to purchase—all while having the technical underpinnings to make that process as seamless as possible.”
How advertisers are testing AI platforms and rewriting creative playbooks
As AI apps such as ChatGPT turn into paid media channels, they offer brands yet another way to reach Gen Z consumers. AI usage is highest among Gen Z and millennials, with 67% of both generations using AI platforms weekly or more, according to Tinuiti’s
2026 AI Trends report. That rate drops to 55% among Gen X and 39% among baby boomers.
Media experts are encouraging brands to take advantage of emerging AI ad offerings, such as ChatGPT ads.
One media buyer, who spoke to Ad Age on the condition of anonymity, said they are “encouraging brands to be in it to guide the strategic roadmap of the ads platform,” adding that “ChatGPT is building a new ad ecosystem and testing enables these brands to be on the strategic forefront for pushing the leadership agenda.”
Tory Lariar, senior VP of search at Monks, told Ad Age that the agency’s recommendation to brands would partially depend on whether their offering and growth strategy caters to Gen Z, since a majority of ChatGPT users are in younger age brackets.
Some brands are also allowing their creative ideas to guide the format of their ads and media strategies. For example, brands such as Procter & Gamble’s Native have pursued long-form marketing through microdramas. Its 80-minute, 50-episode soap opera series, “The Golden Pear Affair,” is focused on reaching Gen Z consumers on social media.
Brands have pursued long-form marketing partially because they’ve taken inspiration from creators, who are shaping Gen Z media consumption habits with a wide variety of content. This has allowed brands to free themselves from the limitations of traditional ad lengths and channels when marketing to younger generations. For example, Maybelline’s five-episode Christmas microdrama ran on the short-form drama platform ReelShort, as well as Facebook, Instagram, TikTok and YouTube.