![]() |
TikTok Ad Revenue Exceeds Twitter and Snapchat Worldwide |
Everybody's got to be
dancing at tick-tock right now given these new projections over their ad revenue
that suggests they have become an advertising juggernaut so much for those
concerns over data collection and privacy issues are no longer a concern.
Talk about the numbers with Deborah Ajo
Williamson principal analyst at insider intelligence Deborah said this app that
most people just associate with these trendy viral dances has become so much
more what are the projections for ad revenue and how do they compare to Twitter
and Snapchat. She said so this is our inaugural forecast for TickTok’s ad
revenue both worldwide and in the United States. we are estimating that this
year TickTok will make 11.6 billion dollars Worldwide to put that in a context
that is more than Snapchat and Twitter combined. This means is incredible
you think TickTok wasn't even around like four years ago it was formed by the
combination of a small app called musically. That nobody remembers with some
other assets that TickTok's parent company bike dance Owns and suddenly now
here we are four years later looking at a company with 11.6 billion in ad
revenue this year. That's to me incredible it
is to put it in a little bit more perspective it's nowhere near what we're
expecting for meta the parent of Facebook and Instagram which is leagues ahead
still and remains to be that way. More and more I am seeing TickTok coming on
strong as an advertising vehicle that advertisers around the world are starting
to clamor to be on just like users you're not kidding. These numbers are
eye-popping I almost fell out of my chair when I saw them what makes TickTok
such a friendly environment you know there are a couple of things so the user
base right now. Estimating that about one in five social network users worldwide
is right now is using TickTok but more than that it's really about the amount
of time these users spend in the United States. Just among adult TickTok users
so not including those teams among the adult TickTok users estimating that they
spend 40 minutes a day watching TickTok videos. That's absolutely the testament
to how TickTok is set up its algorithm shows you videos of all types that you
think that they think you're going to be interested in and in a scrolling feed
that's pretty much endless. It just keeps you going and
the advertising ends up being interspersed in that. I think another factor
that's driving this growth is that TickTok has a lock on the youth market. I just
saw a major survey from investment company Piper Sandler last week where teens
now say that TickTok is their favorite social media app ahead of Snapchat and
Instagram. In our numbers, I estimate that about two-thirds of all teens in the
United States and about three-quarters of young adults 18 to 24 are monthly users
of Tick Tock. A huge audience spends a lot of time on the app and is
engaged watching videos for what seems
to be hours if not minutes if not hours on end. During a day it seems one of the effective
attributes of TickTok is that some of these ads are original content that people
aren't clicking out of they are watching voluntarily and even sharing. I mean
one of the unique things that TickTok did is to involve creators or influencers
in the advertising. A creator might partner with a brand they might create
a video supporting that brand and then that creator will turn to their
followers which often number in the millions and say okay now you guys create a
video using these similar assets. This similar hashtag you put your spin on it
and these kinds of things have spread virally across Tick Tock. I have seen this over and over again and this tight
partnership between creator's brands and then the followers of creators is
really what's helping TickTok advertising it's been a large driver in the name
image and likeness rules. In the NCAA a lot of players make significant money
so I mentioned in the intro those concerns about data collection and privacy. This is a Chinese-owned app
what happened to those a year ago there was a big movement to push people off
of that app and to get children off. It entirely I don't think those concerns
have gone away, to be honest, I think they certainly have diminished in terms of public awareness. I do think that there are still studies that have
come out about the effects of TickTok on people's health just like on other
social media apps. TickTok is not immune to some
of those concerns I also see pretty regular investigations. How the
data is used is it going to China TickTok says no but that's hard to prove so I
wouldn't say that advertisers or users for that matter should disregard the privacy
concerns or the concerns about data usage. But at this time TickTok momentum is
really strong and I think that both advertisers and users are just willing to
overlook that right now. I don't have a lot of time
here what's happening over at Twitter in terms of their growth in their ad
revenue. I did not expect changes regardless of whether or not Elon Musk's
Twitter takeover eventually succeeded. Whether he just hangs on to that 9% you
know hard, to sum up, what's going on on Twitter in a short period but let me see
if I can do that for you before all of this started with Elon Musk. I forecast that Twitter will
have another really good year for revenue with revenue growth of advertising
revenue growth of about 25% per year on year getting to be about 5.6 billion that's
after 41 growths last year. So right now I am looking at a very strong performance
for Twitter what's hard to predict right now is the effect of Musk is whether he going
to push for subscriptions. He is going to as he tweeted over the weekend and then
deleted a push for an ad-free twitter these are some concerns that we have. We
are going to be paying a lot of attention to it because anything that someone
like Musk does to change. How Twitter is experienced by its users does have a
ripple effect on advertisers and that's something we have to pay attention to
yeah whether he is on the board or not he is going to push for change and may
push Donald Trump back onto the format. |
Comments
Post a Comment