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ADVERTISING STRATEGY
TikTok’s ad revenue is set to triple in 2022, new study finds
By our News Team | 2022
The platform’s income from ad sales should hit US$11-billion this year, surpassing the combined income of both Twitter and Snapchat.
There seems to be no end to the rise in popularity of TikTok, the Chinese-based social media platform that specialises in video interactions.
Hot on the heels of reports of rapidly growing user numbers around the world – active users now exceed 1-billion people – is a study that says TikTok’s advertising revenue is likely to triple during 2022.
According to the study published recently by research company Insider Intelligence, ad income could top US$11-billion, which would exceed the combined advertising sales of both Twitter and Snapchat.
“TikTok’s user base has exploded in the past couple of years, and the amount of time users spend on the app is extraordinary,” said Insider Intelligence principal analyst Debra Aho Williamson.
Photo by Cottonbro from Pexels
Platform offers a passionate and dedicated audience
“It has moved well beyond its roots as a lip-syncing and dancing app; it creates trends and fosters deep connections with creators that keep users engaged, video after video. Advertisers want to reach a passionate, dedicated audience, and TikTok can deliver that.”
Research released in March by Statista shows that a significant number of users will spend 5-plus hours a week on TikTok, with many devoting 10 or more hours a week.
Williamson noted that TikTok provides an unusual strategy opportunity for advertisers trying to engage with consumers on the platform.
“Another factor that will drive growth in ad spending is TikTok’s unique take on social commerce,” she explained. “It pairs marketers with creators to help content go viral, and that can drive enormous demand for products that advertisers want to promote.”
A report by Reuters news agency notes that almost half of the platform’s ad revenue will come from the United States, despite concerns that user data from US-based customers will ultimately be passed on to China.
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