What lives in your head, rent free?
According to a report by Insider Intelligence, TikTok’s ad revenue is expected to reach $23.58 billion by 2024. To put this into perspective, this would place the app in the top 3% of the global digital ad market.
Aside from the fact that TikTok’s user base has increased massively (with an average of 8 new users every second), one of the main contributions to this growth is the fact that users are spending longer on the app too.
Trends on TikTok are memorable, the videos are short enough for any attention span and it’s completely tailored to the user. Additionally, users are encouraged to share and interact with the content through duets. This interaction isn’t replicated on such a large scale compared to other platforms such as Twitter or YouTube.
What are the concerns surrounding this growth?
More than half of TikTok’s revenue comes from the U.S (around $6 billion currently), but there have been discrepancies regarding the use of the app in America due to supposed threats to users’ privacy posed by its Chinese ownership, ByteDance. Trump originally wanted to ban the app, but Biden seems more open to it. This income could change drastically if TikTok is declared as a security risk and may alter collaborations between advertisers and consumers.
Duet this if…?
Moving forward, it’s safe to assume that TikTok will survive and only continue to grow. Therefore, marketers will need to start promoting their business on this platform to stay on top of the competition. Unlike normal advertising platforms such as Google or Microsoft, advertisements on TikTok are heavily content-driven. They’re much more personal and about imitating popular formulas in order to be seen.
Marketers will need to start becoming equipped with TikTok to avoid getting left behind, as other social platforms struggle to keep up.
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