The Tiktok overseas version of tiktok under byte beat is the fastest-growing social media platform in the world. It is becoming a strong competitor to youtube, snap and even meta, the parent company of Facebook, because major brands have invested their advertising budgets in tiktok.
Market research firm insider intelligence predicts that tiktok's advertising revenue will triple this year to nearly $12 billion, surpassing twitter and snapchat combined, and overtake YouTube in 2024.
Tony box, senior vice president of social media at advertising agency assembly, said: "I haven't seen another platform generate so much interest since Facebook came out."
Tiktok is not only welcomed by its 1 billion monthly active users, but also has a huge influence. It has entered the field of e-commerce through tiktok shopping (a market that directly connects brands and online celebrities), and has won the favor of advertisers by cooperating with suppliers such as doubleverify, Shopify and openslate.
On Wednesday local time, tiktok announced the launch of its latest advertising product tiktok pulse, which allows advertisers to display advertisements around popular content in their "recommended" content push, which ranks in the top 4% of all videos on tiktok.
Sandy Hawkins, general manager of tiktok North America and global business solutions, said that advertisers can advertise for the top 4% of popular content in 12 categories such as fashion, cars and games. They can buy advertisements at a fixed price through tiktok's advertising manager using tiktok's brand security filter and third-party verification tools.
Tiktok is also always competing with competitors such as instagram, which has launched its own stories function, allowing users to publish videos that disappear after 24 hours. Advertising buyers believe that tiktok can also play a greater role in the audience and enter the territory of YouTube with longer forms of video content.
Katie Price Ross, director of curiosity, an independent media agency, said: "this will not only help consolidate their share of young viewers and stay away from traditional broadcasting, but also attract older users to this platform and diversify their user ages. As more and more advertisers shift their budgets from television to social networking, it will consolidate tiktok's position in the media field."
Tiktok's newfronts presentation focuses on creators and the opportunities they bring to the brand. For example, the platform said that for brands that cooperate with tiktok creators, their brand praise and recommendation increased by an average of 26% and 22% respectively.
Advertising buyers are also seeking tiktok's help to expand their shopping capabilities. "Tiktok may continue to explore #tiktokmademebuyit effect and show how to integrate e-commerce functions within the platform," Ross said
To be sure, tiktok's advertising business is still dwarfed by meta. In 2021, meta's advertising revenue was $115 billion. YouTube's advertising revenue is relatively small, about $29 billion.
As a young platform, tiktok needs to catch up in measuring advertising effect and positioning users in order to win considerable advertising revenue. Advertisers hope that the application can better connect user stickiness with the actual sales of performance-based marketers, add more third-party suppliers, and provide brands with more ways to locate consumers.
Meta and Youtube have not stagnated. The two companies launched their own short video products reels and shorts to fight back. However, many advertising buyers said that reels and shorts have not accumulated the interest of enthusiastic followers or creators, and can not guarantee a large amount of advertising investment. One of them said that people would not use YouTube to share and revel in popular videos such as 60 seconds, as on tiktok, and said the performance of both products was very average.
At the same time, tiktok has outperformed its competitors, including meta, in some areas. The platform is not as popular as Facebook Apple In response to last year's privacy reform, Apple's move weakened the effectiveness of advertising, and many Facebook advertisers shifted their advertising budgets to tiktok.
Jon Severson, vice president and paid social business director of mediahub, spent a lot of time helping customers test and understand tiktok last year. He was attracted by the stickiness, diversity and growing number of users of the application. Severson also witnessed the advertising effect on tiktok. A financial company once tried to increase app downloads and attract customers. The company used tiktok for "super locking", that is, advertising for specific user groups, and the result was more successful than any other platform.
"This is not just because tiktok's user experience is more attractive, immersive and personalized, but also because these experiences of the platform are almost seamlessly combined, enabling marketers to better convince their potential and existing customers," Severson explained
Ross also said that compared with other platforms including meta, tiktok's advertising has more advantages in click through volume and cost, which she attributed to the brand creating more interesting and native content for the app.
Tiktok is winning the favor of key "generation Z" and Facebook is losing its appeal to them. Insider Intelligence reported that in 2021, tiktok's z-generation monthly users were 37.3 million, second only to snapchat, ahead of instagram's 33.3 million and Facebook's 28.7 million.
"In the near future, there are no structural factors that will prevent tiktok from approaching the scale of snap or instagram. Tiktok has more diversified functions and has more dimensions in terms of the time spent and the overall user signals captured by the platform itself," said Jon Morgenstern, head of investment at vaynermedia