Short-video app TikTok saw a major growth boost last year, emerging as the second most downloaded app of 2019. In the process, it also earned $200 million to $300 million in global advertising. This year, the video-making app aims to generate $500 million in the US alone. TikTok’s parent company ByteDance, which is valued at $75 billion, already has a big presence in Asia. Hence the growth goal in the USA points to a large growth scale. Also Read - 52 Chinese apps red-flagged by Indian Intel agencies; TikTok, ShareIt, UC Browser, Clean Master in list
For making money, TikTok follows the Silicon Valley formula. As per a report by Ad Exchanger, TikTok employs a self-serve ad platform that it launched this year. This is integrated with “ad-tech vendors and a new site-tracking pixel,” says the report. Also Read - TikTok-parent ByteDance to shut Vigo Video in India by October 31
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While ByteDance’s applications are popular, they seem to have seen an even larger growth than expected this year. This is due to the large number of people staying in lockdown indoors, globally. ByteDance generated $5.6 billion in revenue for the first quarter of 2020. As per reports by Reuters, there is expected to be a 130 percent revenue growth YoY for the company which is currently valued at over $100 billion. Also Read - Google pulls down TikTok clone app from Play Store
TikTok Vs competition
The swift rise of TikTok can be attributed to its unique short-video making experience that has left competitors in the dust in terms of popularity. The app’s plans to attract more ad dollars as it expands would make it easier for marketers to buy advertisements and tailor campaigns around TikTok groups.
In the US, TikTok has about 50 million daily active users. In comparison, that figure is about five times more than that of last year. Comparatively, Snapchat has 88 million users, Twitter has 33 million, and Facebook has 195 million as of March 31. TikTok even hired heavily to build up its business team in the US. These people were picked from Facebook, Spotify, and Snap.