TikTok's advertising revenue surges at a compound annual growth rate of 300%

Recently, it was reported that the annual compound growth rate of advertising revenue of TikTok, a short video platform under ByteDance, reached 300%.

According to TikTok statistics from January 2022, the social media platform has 1.2 billion monthly active users worldwide.

TikTok has been named the fastest-growing social media platform of all time, shortlisting one of the most downloaded apps worldwide over the past three years.

TikTok currently provides services in 155 countries and regions in 75 languages. Its commercialization pace is extremely fast, and its advertising revenue has reached a certain scale.

Since the end of 2018, TikTok has begun to try to commercialize advertising in different regions. By November 2018, TikTok launched innovative digital advertising solutions for brands in India. In January and February 2019, Tik Tok began testing its information flow advertising business in the United States and other markets. Currently, TikTok's advertising business is concentrated in developed markets such as North America and Europe.

TikTok's advertising business is mainly distributed in industries such as games, e-commerce, and fast-moving consumer goods. Amazon, Procter & Gamble, Burberry, Nike, OPPO, Xiaomi, etc. are all TikTok's advertisers.

With the continuous development of TikTok's advertising business, the platform successively launched e-commerce business in Indonesia, the United Kingdom, the United States and other places in 2021, opening up a new "advertising + e-commerce" business layout model.

However, compared with the advertising products of social giants such as Facebook, TikTok still has many areas that need to be improved in its advertising business.

For example, Facebook's product form means it can obtain more and more accurate user tags, including real names and social relationships, which helps it make more accurate advertising recommendations.

In addition, Facebook has more big customers. It is understood that TikTok's current advertisers are still mainly small and medium-sized Internet companies.

According to relevant sources, TikTok began to vigorously develop e-commerce in the past year, also for the reason of making up for its advertising shortcomings. Developing e-commerce can not only open up new sources of income, but more importantly, the e-commerce business can reach more big customers and big brands, so that advertisers will leave more budget for TikTok.

Social e-commerce

TikTok