TikTok Ads Update: Transitioning to GMV Max – What Sellers Need to Know

As part of TikTok’s continuous efforts to optimize its advertising ecosystem, the platform has announced a major shift in its ads product strategy. Starting in Q3 2025, Custom Shop Ads (PSA, VSA, LSA) will be officially sunset, and all focus will be placed on GMV Max — TikTok’s next-generation advertising solution.

What is GMV Max?

GMV Max is TikTok’s automated ad product that blends both paid and organic traffic to optimize for maximum GMV. Instead of manually selecting targeting and controls like in Custom Shop Ads, GMV Max uses TikTok’s algorithm and automation to deliver your campaigns toward a defined ROI goal. This includes pushing both product videos and livestreams to relevant audiences based on conversion likelihood.

Should You Transition Now?

As we approach full enforcement, many sellers are wondering whether they should make the switch early — and the answer depends on your objectives and campaign strategy.

✅ Benefits of Switching to GMV Max Now:

• Stability in Algorithm Performance
  The system is designed for consistent delivery, making it more reliable than older manual campaign structures.

• Early Mover Advantage
  Sellers adopting GMV Max now may see performance benefits compared to competitors still using older formats.

⚠️ Current Limitations to Note:

• Limited Manual Control
  GMV Max currently lacks options for audience retargeting, interest/demographic targeting, and specific schedule control.

• No Video-Level Budget Allocation (Yet)
  If one video is performing well, the system may over-prioritize it. New videos may not get enough exposure without manual budget distribution — a feature that’s currently in development.

What’s Coming: Upcoming Features in the Pipeline

TikTok is working on addressing these limitations with several updates expected between Q2 and Q3 2025, including:

• Video-Level Budget Control
  Sellers will be able to manually assign budget across multiple videos to balance exposure and test performance more effectively.

• Improved Affiliate Video Management
  New tools will soon allow creators to mass-authorize videos for ad use or approve usage requests through a simple dashboard interface, reducing the manual effort to gather video codes.

Best Practices for Managing GMV Max Campaigns

Until more features roll out, here are a few ways to ensure you're using GMV Max effectively:

1. Set Your ROI Strategically

Adjust your ROI based on stock levels and margin.

• Low stock? Set a higher ROI to limit spend.

• Clearance stock? Lower the ROI to boost sales velocity.

2. Monitor Budget Utilization

Check if your budget is fully spending. Under-delivery may mean your ROI is set too high, narrowing your eligible audience pool.

3. Consider Pairing with Upper-Funnel Branding

While GMV Max focuses on conversions, pairing it with Reach & Frequency campaigns can boost top-of-funnel awareness. TikTok is exploring options to link this awareness traffic into GMV Max conversion campaigns in the future.

4. Manage Affiliate Creatives Proactively

If creators haven’t enabled auto-authorization, you can still insert video codes manually. TikTok is also working on a batch request feature for easier creative access.

Final Thoughts

While TikTok’s move to GMV Max may feel like a big shift for sellers and agencies, it reflects a larger trend across the ad industry — prioritizing automation and holistic performance. Platforms like Meta (Advantage+) and Google (Performance Max) have already moved in this direction.

Agencies and sellers who adapt early will have more time to test, learn, and build a data advantage before Custom Shop Ads are completely removed. And with ongoing updates being rolled out throughout 2025, GMV Max will become more flexible and strategic over time.

If you're considering making the switch or need help navigating the change, feel free to reach out.