As the most successful APP going overseas, the number of users is increasing and the number of downloads is also increasing. TikTok has also become the public enemy of many overseas technology companies. Since its birth, revenue, traffic, and users have continued to increase. Let’s take a look at how TikTok does it.
Recently, Reuters commented that TikTok is “devouring” Facebook from the inside: not only sucking away Facebook’s young users, but also starting to challenge Facebook’s new media dominance.
Reuters’ interpretation is not sensational. In the latest first-quarter earnings report, the performance of Facebook parent company Meta made the market mixed.
The good news is that Facebook had 1.96 billion daily active users in the same period, up 4% from a year earlier and better than investors expected.
Worryingly, Meta’s revenue was $27.908 billion, an increase of 7% year-on-year, but the growth rate fell to the lowest level in 10 years of listing.
After the news was announced, Meta’s stock price soared 19% after the market, but the media generally believed that this was just an oversold rebound. Looking back at the last earnings call, Facebook user growth stalled for the first time, surprising everyone. CEO Zuckerberg even blamed rival TikTok in part. Meta’s share price has been falling since then.
Meta’s share price is now nearly halved from the year’s highs. Shares in the company were down 48% from the start of the year as of the previous session, far underperforming the broader market (down 12%). TikTok, on the other hand, although it is not listed and cannot be measured by market value, its development momentum and Meta are polarized.
From the perspective of the hard indicators of active users, according to data from the analysis company Data.ai., TikTok has nearly 1.6 billion monthly active users in the first quarter of 2022. Although the absolute number is not as good as Facebook’s 2.9 billion, the growth rate has reached 45%, which is still beats Facebook by a large margin.
According to media reports, in 2021, TikTok’s advertising revenue will reach nearly $4 billion. In 2022, TikTok plans to triple its ad revenue to at least $12 billion, according to multiple sales figures.
This figure is enough to make other mainstream overseas apps worry: Twitter’s total advertising revenue in 2021 will be 4.499 billion US dollars, only a little higher than TikTok; YouTube’s advertising revenue in 2021 will be 29 billion US dollars, according to Insider Intelligence, a market research firm. The numbers will be overtaken by TikTok in 2024. Meta’s advertising revenue in 2021 is $115 billion, and it has always been TikTok’s direct target product.
In fact, Blake Chandlee, the capable man who led TikTok’s rapid commercialization, was the commercialization leader who had worked at Meta for 13 years. He single-handedly built Meta’s overseas business. team.
He currently manages TikTok’s global advertising sales teams. Since he joined in 2019, TikTok’s advertising partners have grown from single digits to tens of thousands. However, some TikTok commercialization employees said that the commercialization value of a single TikTok user is still less than one-fifth of that of Meta. But the commercialization of TikTok is still accelerating. In May, TikTok announced the launch of TikTok Pulse, its newest advertising product that allows advertisers to appear in popular content recommended to users, which ranks in the top 4% of all videos on TikTok .
At the beginning of 2021, TikTok launched TikTok Shop Indonesia and UK stations. The merchants who settled in early need to be local accounts, and only local users can come to shop. In June of the same year, TikTok opened the TikTok Shop cross-border store to support cross-border sellers in the opened sites. In September, TikTok Shopping was launched, mainly targeting the US market. In December, the UK station of TikTok Shop began to be open to Chinese merchants.
In order to occupy the UK market with high customer unit price and high profit, TikTok Shop UK once gave an incentive policy of free commission and free shipping for new merchants. The so-called TikTok Shop is similar to the Douyin Store, which is a tool for merchants to bring goods. For users, it is like having a Douyin window shop, swiping right can enter the homepage and view the shop and products. It does not require independent stations and off-site drainage, and small stores can directly sell products on TikTok, which belongs to the direct conversion of on-site traffic.
According to a new report from mobile data analytics platform App Annie, they predict that by 2022, TikTok will have more than 1.5 billion active users. And this user volume WhatsApp took nearly two years to complete. Analysts at App Annie said that Tik Tok is growing fast in 2021 compared to other social media platforms. At present, Tik Tok has more than 689 million monthly active users, and has 50 million daily active users in the United States alone, which means that 18.68% of American mobile Internet users log on to TikTok every day. The popularity of Tik Tok has continuously increased its global influence, attracting a large number of users and bringing him considerable advertising revenue. It is expected that TikTok will continue to increase its investment in the shopping sector in 2022 to adapt to the shopping habits of consumers under the current situation and attract more users and merchants to use TikTok.
Under the continuous promotion in the future, TikTok’s users believe that the increase will not be faster than the loss. This will also become a traffic password, and there will be continuous merchants who will invest in it, and will continue to make it the app with the most traf