TikTok is one of the most popular apps that is being used worldwide. With more than 1 billion active users, it’s more than any other app could dream of! It is owned by a Chinese company named ByteDance. An analyst at Insider Intelligence, Debra Aho Williamson, has stated that the amount of time people spend on TikTok is extraordinary and it has exploded insanely in the past few years. TikTok has been successful in keeping its users hooked through engaging and interesting content.
In 2022, it is expected that Twitter and Snapchat will generate $5.58 billion and $4.86 billion, respectively, in advertising revenue. However, as far as TikTok’s ad revenue is concerned, it is expected to get triple this year from $3.88 billion to $11 billion. That’s more than the combined revenue of Twitter and Snapchat! And surprisingly, $6 billion of TikTok’s ad revenue, which is more than half of its total, has been forecasted to come from the America, despite the regulatory concerns regarding user data being sent from the USA to China.
Furthermore, TikTok’s ad revenue is going to reach $23.58 billion by 2024. This way, it will get closer to the most used and famous app in the world – that is, YouTube, which has $23.65 billion in ad revenue. Both video platforms will end up covering 3% of the global digital ad market. Despite the exploding increase in both usage and ad revenue, TikTok has a very small share in the global digital ad market. On the other hand, Meta has 21%, and Google has an approximate 30% share.
A Detailed Insight Into TikTok’s Increasing Ad Revenue
People are in awe of Tiktok’s rapid and sudden rise in popularity in the past few years. Currently, it is the fastest-growing digital media platform in the marketing world. It has become the favorite app of the majority of people, especially the young generation who are looking for new trends and creative ways to showcase their talent. It is so easy to use as all they have to do is log in and make videos or watch funny content just to laugh out loud and make their lives a little less stressful. As of December 2019, TikTok had an estimated 508 million active users per month. The number of its active users has now increased to 1 billion. This means advertisers can show more ads which, in turn, will help generate more revenue! Last year, it also uncrowned Google by being one of the most popular web addresses worldwide for the first time in history.
The increasing popularity of TikTok is the reason why most brands, including e‑commerce, are now shifting toward it to experiment with different advertising campaigns. It has also resulted in pushing TikTok into creating a proper marketing strategy to make the most out of the app. Debra Aho Williamson from Insider Intelligence stated in a report that TikTok has become more than a dancing and lip-syncing app. It is now a trendsetter that has a vast audience. It also promotes a deeper connection with the creators who constantly post video after video to keep their users engaged. Now, advertisers are dependent on TikTok to reach a dedicated audience.
With people’s interest in TikTok skyrocketing over the years, so has the popularity of the app. It further causes to prompt ad revenue which will block out the combined revenue of its rivals – Twitter and Snapchat. While brands were attempting to reach TikTok’s wider audience, the app itself tried to create a strong relationship with them to both win their trust and get a larger market share. TikTok has also made significant investments in 2021 to strengthen its position in the market by taking action for privacy, commerce, admeasurement, and so much more. It has also launched a TV app by partnering with Atmosphere to bring it on a bigger screen in front of people in the gym, restaurants, and other public places.
One of the most important factors contributing to the growth of TikTok is the approach it has taken to social commerce. It connects advertisers or marketers with video creators to ensure that the content goes viral. It further helps promote the product to create a huge demand for it. Likewise, TikTok is also constantly updating its features. This includes introducing new features that can help different brands control the audience they are going to target through ads. Recently, it announced the launch of a new in-app guide called the “Election Guide.” It is supported by the Australian Election Commission and aims to provide trustworthy information to the Australian community for the 2022 federal election.
In short, TikTok is the new sensation in the digital world! However, it must follow a proper marketing strategy to grow even further. The number of ads it shows must not disturb or irritate the user. At the same time, it should provide enough space for advertisers to promote their products. TikTok must keep a balance in advertising ads and introducing new features for its users to ensure that it maintains the lead in generating ad revenue.