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.

Advertising Strategy

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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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.