As of early 2026, TikTok advertising operates on a highly sophisticated AI-driven platform, utilising advanced machine learning to optimise ad delivery and personalise user experiences. Current systems include a blend of automated bidding strategies and granular targeting options, all managed through the TikTok Ads Manager.
- Dynamic Creative Optimisation (DCO): TikTok now features DCO as standard, automatically testing different combinations of your ad elements (headlines, visuals, calls-to-action) to identify the highest-performing variations.
- Advanced Audience Targeting: Beyond demographic and interest-based targeting, you can now leverage ‘Lookalike Audiences’ based on your existing customer data uploaded via secure API integration, and ‘Custom Audiences’ built from website visitors or app users.
- TikTok Shop Ads: Seamless integration with TikTok Shop allows for direct product promotion within ads, driving conversions without users leaving the platform.
- Branded Effect Marketplace Expansion: Businesses can now create and sponsor highly interactive branded effects, increasing brand awareness and user engagement.
In 2026, Australian businesses must adhere to updated ACCC guidelines regarding data privacy and ad transparency when utilising TikTok’s targeting capabilities. Compliance with the Online Safety Act is also crucial, particularly concerning ads directed at younger audiences. TikTok’s platform now includes automated checks to assist with this, but ongoing monitoring is still recommended.
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