TikTok Forces Advertisers Into AI-Controlled Campaigns with GMV Max, Sparking Industry Pushback

TikTok is requiring advertisers on TikTok Shop to shift their ad campaigns to an AI-powered tool called GMV Max, effective September 1. The move marks a significant step toward fully automating ad management on the platform, giving algorithms — not human marketers — control over budget allocation, ad creation, and targeting. Advertisers using TikTok Shop will now need to set a target return on investment and select products they want to promote, after which GMV Max’s AI will automatically decide how to spend the budget to maximize sales. The tool can boost existing ads or launch new ones based on real-time performance data. This shift has sparked concern among some marketers and ad agencies, who worry about losing strategic control and transparency. Unlike traditional ad platforms, GMV Max operates as a black box, offering limited insight into audience demographics, geographic performance, and influencer impact. Ad buyers say this makes it difficult to measure effectiveness beyond TikTok’s own ecosystem and to use data to inform broader marketing strategies. Dwight Bush, director of paid social at Doner Partners Network, said the tool demands a high level of trust in TikTok’s algorithms. “It’s asking for us to put a lot of faith in the platform,” he said. Jack Johnston, head of social innovation at Tinuiti, added that large brands with established creative and media strategies are especially hesitant, as they want to maintain full control over their campaigns. TikTok’s approach mirrors similar moves by Google and Meta, which have also pushed AI-driven ad tools. However, TikTok’s mandate is mandatory and fast-tracked, with the company moving the deadline from July to September in response to early feedback. Some agencies reported receiving extensions for clients who were unhappy with the change. Despite the pushback, smaller sellers have embraced GMV Max. The tool’s “ROI Protection” feature, which issues ad credits if a campaign falls below 90% of its target return, provides reassurance for smaller merchants. Katy Hallam, head of client services at TikTok commerce agency Onyx, called the tool a “game changer” for some clients, particularly in saving time and boosting sales. Another issue is that TikTok credits all purchases during a GMV Max campaign to the tool, even if the customer never saw an ad — a practice that has raised concerns about attribution accuracy. TikTok maintains it offers both first- and third-party measurement solutions and partners to track off-platform sales, but some metrics remain unavailable to all advertisers. TikTok Shop continues to face challenges in attracting large brands. While companies like Anker, Maybelline, Garnier, and Crocs have found success, many big brands struggle with internal alignment, as TikTok Shop blends social media and e-commerce — functions often managed by different teams. Additionally, concerns about counterfeit products and the difficulty of proving ROI from livestream sales have slowed adoption. Still, TikTok reported that over a third of US TikTok Shop purchases in 2024 came from small businesses, and more than 171,000 small businesses have launched shops globally. The platform remains focused on expanding its reach, even as it navigates growing tensions between automation and marketer autonomy.