TikTok, the short-form mobile video app that’s popular among Gen Z, has been rapidly growing its young user base, and as a result, TikTok has constantly been trying to make the experience worthy of using.
As we already know TikTok revenue has shot up by 500% last year, however there is still a missing link which WAS “social shopping” (meaning a type of marketing where shopper purchase good online directly via ads).
The platform has successfully identified the missing link and monetized with a “social shopping” marketing technique.
Social Media Shopping is fairly popular in some parts of Asia as well as USA and gradually growing worldwide. The likes of Instagram and YouTube have already joined the bandwagon and I guess it’s TikTok’s turn now!
Siegel, thinks TikTok’s core reliance on “talent-based content” rather than “status-based content” could be its key to success. He also stated that, “…People who have spent a couple hours learning a new dance or think about a funny new creative way to tell a story, and they’re really making media to entertain other people,” versus on Instagram wherein people share selfies in their supercars of just a #ootd.
So far TikTok has had a manual ad buying process wherein brands can contact a member of the company of choice directly, these advertisements would pop up as soon as you open the app or air between videos. FYI these ads were skippable and the new version might not be…
Snap CEO Evan Spiegel said “…TikTok has the potential to overtake Facebook-owned Instagram. Both have about one billion monthly active users, but Instagram was forecasted to make $14 billion last year compared to TikTok’s $176.9 million.”
TikTok hasn’t confirmed it’s a self-serve ad platform, its uncertain when the platform could be integrated into the app for all advertisers.
What are your thoughts? Let us know in the comments.
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