Earlier this year, it was reported that TikTok ad revenue has overtaken Twitter’s in the first quarter of this year. With a total ad revenue of $840 million, the Facebook-owned platform is now one of the biggest players in the mobile advertising industry. In addition, it has also been credited with helping to drive the overall US ad revenue to surpass $11 billion by the year 2024.
Us ad revenues will exceed $11 billion by 2024
Earlier this year, Amazon started reporting on its ad business. In its heyday, Amazon’s share of the digital ad market was less than 1%. But the market is growing. In fact, research from Omdia shows that online video ad revenue will reach over $331 billion in 2027. Interestingly, Amazon executives talk of advertising as one of three engines that drive their business.
Amazon is looking for new revenue streams. They bought the ad-tech company Xandr earlier this year. It’s also looking to add ad-supported subscription tiers to its streaming services.
As for TikTok, it’s got a unique approach to digital advertising. It specializes in short form mobile optimised videos. It’s especially popular with younger consumers. Its follower base is so large that it can’t be ignored.
The company’s ad revenue is growing at an impressive rate. Last year, TikTok’s revenue jumped 175%. It isn’t yet earning as much as Instagram or Facebook, but it’s well on its way to catching up. It will be able to do that by 2024. It’s also expected to earn more than Twitter and Snapchat combined.
TikTok is the fastest-growing social media app. It has over one billion active users worldwide. TikTok has partnered with marketers and creators to help their content go viral. It’s also one of the most popular social media apps in the US. It’s not surprising that it’s catching up with older digital ad companies.
As a result, TikTok’s ad revenue is expected to exceed $11 billion by 2024. That’s up from $2.1 billion last year. It’s also projected to generate more than a quarter of its ad revenues from the US. That’s not bad at all, but TikTok’s US ad revenues will not top that of Instagram or Facebook. It’s also not clear how much more TikTok will earn from the US in 2024. It’s possible that TikTok will earn less than YouTube, but that’s a bit of a stretch.
The TikTok ad business isn’t yet as large as Facebook or Instagram, but it’s on its way to catching up. The company’s unique ad model is likely to be one of its most profitable offerings.
US ad revenues will jump by 184.4% this year
Despite being a relatively new company, TikTok is gaining on more established digital ad sellers. Its user base is growing, and TikTok is on the verge of capturing more ad dollars than Twitter and Snapchat combined. In fact, TikTok’s ad revenue is expected to grow 184% this year, compared to the previous year.
TikTok’s net ad revenues in the US will increase by 184.4% this year, compared to the previous one. It will control 2.4% of the US digital ad market, compared to 1.9% in the previous year. This will give TikTok a share of 51.2% of worldwide TikTok ad revenues in the US.
TikTok’s ad revenues are projected to grow to $11.2 billion in 2024, compared to $8.4 billion in the previous year. This growth will help TikTok to command more adverts than Twitter and Snap combined, in the US market.
TikTok’s accelerated growth is a result of its emphasis on improving the in-app shopping experience for users. It is also a result of the growing popularity of video advertising. The platform has been onboarding more creators. And it is working on new ways to recommend content to its users. It is also investing in post-campaign measurement tools to better understand how its ads perform.
TikTok’s burgeoning user base has compelled many digital marketing agencies to shift their strategies. For instance, it is becoming harder for advertisers to target consumers with the same level of granularity as Google. It is also difficult to assess how effective ads are. This means that advertisers are focusing on targeting an audience that is passionate about the product.
TikTok’s heightened popularity among teenagers is also driving the growth. According to the report, it has more than 1 billion active users in the U.S., with more than half of them being under 25. In fact, TikTok will surpass YouTube in 16 years. TikTok’s user base also means it has the potential to deliver a dedicated audience. In addition, TikTok’s ads are becoming more elaborate, as consumers make more money.
User engagement helps attract advertisers and content creators
Whether you are trying to woo your B2B counterparts or hawking your wares to your gran and granskins, the secret to success isn’t just about having a big enough budget or a big enough target demographic. You can’t just throw a few hundred dollars at Google Adsense or Facebook Adsense and hope for the best. In order to get your name out there, you need to go big and go small. This isn’t a bad thing if you take the time to do it right. The more effort you put into it, the more success you’ll get.
It is no secret that social media is an indispensable part of many a company’s daily regimen, which is why having a nifty little social media tool kit at your disposal can be the difference between a successful and unsuccessful campaign. Luckily, having a social media marketing plan isn’t that difficult, assuming you do your homework. The most important part of the equation is getting your audience to engage with you. You can accomplish this by displaying content that is relevant to your audience.
Competition from imitators
Despite Twitter’s blue tick becoming a status symbol, the platform is still lagging behind TikTok, a Chinese video app, in terms of ad revenue. However, the app is set to surpass Twitter and Snapchat combined in the US market.
Twitter’s blue tick was a way for the company to keep impersonators in check, but it quickly morphed into a badge of honour. TikTok, on the other hand, has a focused experience. It is a place where creators can post original content, and brands can engage with users in a more authentic way. TikTok has also partnered with marketers to help content go viral. TikTok has also redesigned its Video Kit to make sharing easier, and it has expanded its offering to include live streams.
Despite the competition from imitators, TikTok has the unique ability to attract a passionate audience. The company is also able to create a comprehensive emotional profile of users in minutes. Advertisers can reach users who are passionate about a brand, and TikTok’s targeted advertising makes the platform attractive to brands.
In the US market, TikTok has a 2.4% share of the digital ad market, behind Twitter (which has 29 percent), Snapchat (which has 4.86 billion), and Alphabet’s YouTube (which has 711 million). However, TikTok’s ad revenues are set to grow 184.4% in 2019, and are set to exceed Twitter and Snapchat combined in 2024. In total, TikTok’s ad revenue will be more than $11 billion by 2024. This will cut deeply into the top and bottom lines of the incumbents.
In the first quarter of 2019, TikTok surpassed Facebook, and was the second-largest social media app. TikTok has also made inroads in India and China. TikTok’s user base has grown exponentially in the past couple of years, and it has attracted a mobile-savvy, young population. It is poised to break out of the lip-syncing app niche and take market share away from the big names. Despite the growing competition, TikTok will remain successful because it has a unique vision.
In the future, TikTok will expand its influence by offering tangential products. It will also continue to build its content flywheel at a low cost, allowing it to attract creators and brands.