TikTok rolls out AI ad tools to woo Southeast Asia

TikTok has introduced a suite of new advertising, artificial intelligence and in-app engagement tools aimed at helping app developers and publishers drive growth across Southeast Asia's mobile economy.

New updates from the company focus on mobile entertainment and gaming, two sectors attracting sustained user engagement across the region.

According to Sensor Tower data, consumers downloaded 149 billion apps globally in 2025 and generated USD $167 billion in in-app revenue. Southeast Asia has emerged as a major growth market, particularly for short drama applications and mobile gaming.

Sensor Tower reported that short drama applications recorded 2.26 billion downloads worldwide during 2025. Download growth accelerated in the first quarter of 2026, rising 140% year on year. Southeast Asia accounted for 32% of global downloads and delivered growth of 220% year on year.

Users across the region spend close to 40 minutes each day engaging with short-form drama content on mobile devices, according to the research.

"Short dramas have emerged as one of the fastest-growing mobile entertainment categories worldwide. The category recorded 2.26 billion global downloads in 2025. Growth continued into 2026, with downloads increasing 140% Year-on-Year (YoY) in Q1 2026. Southeast Asia is at the forefront of this trend, accounting for 32% of all global downloads and delivering a 220% YoY growth rate. Users in the region now spend an average of nearly 40 minutes per day engaging with these mobile-native, bite-sized storytelling formats," said Krishan Patel, Country Head, INSEA & ANZ, Sensor Tower.

Gaming is also forecast to keep expanding. Research from Boston Consulting Group projects the global gaming industry will reach approximately USD $350 billion by 2030. Its report found that 55% of surveyed gamers increased their gaming time during the second half of 2025.

Native experiences

To support developers targeting these sectors, TikTok introduced Mini Dramas and Mini Games. Both formats are integrated directly into the platform and allow users to discover, consume and purchase content without leaving the application.

Through these formats, users can watch episodic drama content, play games and make purchases within the same environment. Publishers and developers can also launch these experiences through a deployment process that TikTok says takes approximately one month from registration to launch.

TikTok also launched Growth Max, an automated advertising product designed specifically for Mini Dramas and Mini Games. The product is intended to help advertisers manage campaigns across discovery, engagement and conversion stages.

"The app industry is entering a new phase of growth as AI solutions are making app creation easier and lowering development barriers. As competition for consumer attention increases, it is becoming more important for developers and publishers to attract users and keep them engaged. At TikTok, we're helping businesses connect discovery, engagement and monetization in a seamless journey through platform-native experiences built directly within TikTok," said Yuke Hu, General Manager, Global Business Solutions, SEA and Japan, TikTok.

AI expansion

TikTok has expanded its creative AI capabilities through the integration of Dreamina Seedance 2.0 into TikTok Symphony.

Advertisers can use the video generation model to create video content at scale while maintaining consistency across campaigns.

A new feature called Reference to Video has also been added to Symphony Creative Studio. It allows advertisers to specify particular products and images at defined moments in AI-generated video content.

TikTok said the addition gives marketers more control over creative outputs generated through AI systems.

Developer tools

Alongside its creative products, TikTok introduced the TikTok Ads Model Context Protocol Server, a new interface designed to support development of AI agents and automated advertising tools.

Developers and advertisers can use the server to build systems that execute campaign management functions with reduced manual involvement.

TikTok also launched TikTok Ads Skills, a collection of software components that can be used to create advertising-focused AI tools.

Supported functions include campaign creation, audience discovery, creative analysis, performance reporting and budget optimisation.

Global growth

TikTok said its platform continues to support developers seeking to expand beyond domestic markets.

Internal data comparing April 2025 with April 2026 found that publishers operating outside Southeast Asia achieved revenue growth rates that were twice as high as businesses focused solely on the region.

"Success in today's landscape comes from turning immediate cultural relevance into long-term value. We want to ensure TikTok provides the foundational ecosystem where advertisers can seamlessly unlock these high-potential opportunities and build sustainable global growth," said Hu.