How Automotive Retailers Can Use TikTok AIAs to Sell More Cars

TikTok is no longer just an app for dance trends or viral comedy. For car buyers - especially Gen Z and millennials - it’s become a serious destination for vehicle discovery. And with the launch of TikTok Automotive Inventory Ads (AIAs), automotive retailers now have a powerful, AI-driven tool to promote their entire stock through engaging, video-first formats.

In this guide, we’ll explain how TikTok AIAs work, why they matter, and how Phyron makes it easy to create and scale the kind of content today’s car buyers expect to see.

What are TikTok AIAs?

Since Covid, the car buying journey has become not only more digital - but also more social. Buyers aren’t just browsing AutoTrader and Google anymore. Increasingly, they’re scrolling TikTok.

Launched in early 2024, TikTok Automotive Inventory Ads (AIAs) are a breakthrough ad format built specifically for automotive retailers. In essence, they allow your entire vehicle stock to be advertised at the VIN or catalog level, by pulling inventory feed data directly from your dealership.

These ads appear natively in the TikTok feed, not as traditional banners or pre-rolls, but as interactive, mobile-first posts. Each one includes:

✔ Vehicle images or video
✔ Live pricing and promotional info
✔ Calls to action like “Shop Now” or “View Details”

Crucially, TikTok’s algorithm targets each ad based on user behaviour, location, and interests, meaning every viewer sees vehicles relevant to their search intent - not just generic promos.

The result? A fully personalised, high-intent discovery experience that gets your cars in front of the right buyers, at the right time.

Why TikTok matters for automotive retailers

To sell more cars, you need to put your inventory in front of more motivated buyers. And TikTok delivers just that.

✔ It has 170M+ active users in the U.S. alone
✔ Over 20M UK users (30% of the population)
✔ According to TikTok, 1 in 3 of these users is in-market for a new vehicle

And perhaps most importantly: TikTok is built for video, which is proving far more effective than static content. Our own internal data at Phyron shows:

✔ +35% increase in leads from video ads
✔ –20% reduction in cost-per-lead vs static ads

In addition, TikTok’s own findings found that advertisers testing their TikTok AIA campaigns saw about a 41% lower Cost Per Acquisition (CPA) compared to their “business as usual” ad campaigns.

How TikTok AIAs work

TikTok AIAs let you promote your full vehicle inventory dynamically, without pulling buyers out of the app.

Here’s how it works:

1. Connect your live inventory feed

Your real-time stock is ingested via TikTok’s automotive catalog.

2. AIAs auto-generate native ads

TikTok uses your feed to dynamically create native, interactive ads that appear directly in a user’s feed. Each ad opens with an eye-catching branded image, teaser, or video pulled directly from your inventory.

3. Shoppers swipe a tailored vehicle carousel

Viewers can swipe through up to 20 vehicles - handpicked by TikTok’s AI based on user behaviour, preferences, and location. At the end of each carousel is a branded end card with your dealership’s logo, offer highlights, or a call-to-action.

4. In-market buyers filter your inventory

Shoppers can also browse your entire catalog within TikTok - sorting by make, model, year, or price without ever leaving the app.

5. Shoppers explore your inventory in-app

Each ad links to a TikTok-native experience where buyers can browse your full stock - without leaving the platform. Users typically don't want to leave the platform and are more likely to engage with content that keeps them there.

6. Everything is optimised by TikTok’s AI

Creative, targeting, and bidding are automatically optimised in the background, based on what’s working - and what’s not.

With Phyron handling creative and catalog syncing behind the scenes (more on that next), TikTok AIAs make it easy to engage high-intent shoppers and drive more conversions.

Breaking the content production bottlenecks

Creating one or two slick car videos can be relatively simple.

But creating hundreds, every week, across your changing inventory? That’s a bigger challenge.

For most automotive retailers, producing TikTok-ready creative at scale is unmanageable:

✔ You need video assets for every car
✔ You need to keep up with fast-moving inventory
✔ You need to meet TikTok’s best practices: short, vertical, mobile-native

That’s why many dealers give up. or stick to image-only carousels that don’t convert as well.

How Phyron Solves It With AI

With Phyron, producing AIA-ready creative isn’t a bottleneck, it’s automatic. Here’s how we help automotive retailers succeed on TikTok:

AI-generated car videos, instantly

Phyron transforms your photos and data into studio-quality videos.

Live sync with TikTok’s catalog

Your TikTok AIA campaigns update automatically when prices, images, or listings change.

100% hands-off ad creation

No creative team, editing tools, or reshoots required.

Whether you’ve got 50 vehicles or 5,000, Phyron makes it easy to run TikTok AIAs that grab attention and drive results.

6 tips for success with TikTok AIAs

✔ Lead with short, punchy videos

Under 10 seconds. Strong hook in the first 2. Keep it fast, mobile-first, and scroll-stopping.

✔ Think video-first, not image-only

TikTok supports static carousels - but this isn’t Instagram. Performance drops without motion.

✔  Let TikTok’s AI do the heavy lifting

Feed it data-rich creative, then let it optimise your targeting, bidding, and delivery.

✔ Avoid ad fatigue

Switch up creative regularly to stay fresh. Phyron’s automated rotation helps here.

✔ Don’t skip tracking setup

Use UTM parameters and conversion APIs to track leads - otherwise, you’re flying blind.

✔ Budget smart

Plan €15–€20 per car per month for meaningful results. Smaller budgets spread thin and underperform.

Conclusion

TikTok AIAs are the most exciting development in automotive advertising in years. They combine TikTok’s unmatched reach with personalised, in-feed product discovery - and they’re only getting more powerful as the platform evolves.

But without the right creative strategy and content automation in place, most dealerships will struggle to scale their TikTok AIA campaigns.

With Phyron, you can run high-impact, video-first campaigns at catalog scale - fully automated, fully optimised, and fully connected to TikTok.