TikTok is one of the hottest topics in pop culture right now. There are those like entrepreneur and early tech adopter Gary Vee, who went all in believing it was the next big thing and those who dismiss it as another cyclical new social media platform fad. Oh, AND the President of the United States has threatened to ban the app due to their Chinese ownership. Despite anyone’s feelings, the app’s popularity can’t be denied, currently possessing over 800 million active users worldwide. The success is largely due to engaging creative videos like the one below.
An iOS and Android social media app primarily used for creating and sharing short videos. It was initially launched as Douyin in September 2016, in China. The following year, in 2017, the app was launched by ByteDance for markets outside of China. TikTok and Douyin both use the same software, but maintain separate networks in order to comply with Chinese censorship restrictions. The app is available all around the world via the Google Play or Apple App stores.
- 800 Million Active Users Worldwide (155 Countries)
- 2 Billion Downloads
- #1 Most Downloaded App on the Apple App Store
- Average user spends 52 minutes per day on the app
- 90% of users use the app multiple times per day
- 41% of users are age 16-24
TikTok Competitive Advantages
Algorithm: ByteDance, an artificial intelligence company, has done an excellent job creating a powerful algorithm. This algorithm has produced infectious results, leading to its rapid rise in popularity. The key to success was making the app popular among creators, creators (influencers) lead the adoption of new platforms. TikTok is popular among creators because unlike Instagram it is not uncommon for a user with a relatively no small follower base to end up with a viral video on the #ForYou page. The popularity among creators has allowed TikTok to create their own content community relatively quickly, which even Facebook has to envy.
TikTok recently released a Press Release explaining how they recommend videos #ForYou. In a future series we will discuss the algorithm in detail and how to monetize your following as a creator or a business, but below are a couple facts.
According to TikTok: “The system recommends content by ranking videos based on a combination of factors — starting from interests you express as a new user and adjusting for things you indicate you’re not interested in, too”.
- User interactions: videos you like or share, accounts you follow, comments you post, and content you create.
- Video information: details like captions, sounds, and hashtags.
- Device and account settings: like your language preference, country setting, and device type.
Advertising: The user demographics listed in the beginning of the article has made TikTok a popular platform for businesses targeting the Gen Z demographic. Digital Marketers are beginning to include TikTok in their marketing budgets and plans.
In order to support Small Businesses, TikTok is dedicating $100 million USD in ad credits to help small businesses reach their customers on our platform.
- Eligible SMB customers can claim a one-time ad credit worth $300 USD to be used by December 31, 2020.
- Any additional spending will be matched 1-to-1 with ad credit, up to 2,000 USD per business.
The most cost-efficient time to advertise on a platform is in the beginning, businesses that qualify should take advantage of this opportunity. Due to the native nature of TikTok ads, when done correctly users don’t even initially realize they are viewing an advertisement. Contact us for any strategic or creative needs in order to launch you’re business’ TikTok campaign.