TikTok is a video-sharing app owned by Beijing-based tech giant ByteDance. Initially launched for the Chinese market under the name Douyin in 2016, the app’s international equivalent quickly became a global sensation, amassing millions of users every year. Previously considered a short-lived teen phenomenon, TikTok maintained its position among the
in 2023. And even though it still ranks behind Facebook and Instagram in terms of popularity, Tiktok’s meteoric rise continues unabated. With a
. This leaves no doubt that the app, has become an immensely profitable business model. Besides young internet users catching on to the hype, marketers are also dedicating more time and dollars towards the app than ever.
How are marketers using TikTok?
Brands and businesses are increasingly embracing the vast potential of TikTok as a marketing tool. While the short-video-sharing app can still not compare with Facebook, Instagram, and
other leading social media platforms used by marketers, a recent survey found that over
38 percent of industry professionals planned to increase their usage of TikTok for promotional campaigns in the upcoming 12 months. Apart from promoting their products and services via influencers, companies can also create their own profiles, upload videos, and start creative challenges to feature on TikTok’s For You page and potentially be seen by millions of users worldwide. One brand that has successfully harnessed the power of TikTok is Netflix. With close to 23 million followers, the VoD giant ranks second among the
most popular brands on TikTok globally. Interestingly, TikTok’s own brand leads the most popular brand ranking on its own platform.
Engagement rate magic: influencers on TikTok
Influencer endorsement has proven to be an immensely effective form of social media marketing on pioneer platforms such as Instagram. This success has translated to TikTok and the new generation of entertainment apps, as more brands now cooperate with TikTok stars than ever. What makes these collaborations so appealing is not only the massive audience reach of TikTok mega-influencers like Bella Poarch but also the impressive engagement rates that influencer content can boast on the platform – especially among Gen Z users. By partnering with popular creators, brands can keep their fingers on the pulse and resonate with young audience, something many companies have struggled with in the past. So, who are the most sought-after influencers on TikTok? As of March 2023, Khaby Lame was the
most-followed person on TikTok. Seeing that sponsored posts by these creators can cost
thousands of dollars, small businesses tend to work with nano- and micro-influencers who have fewer followers but can cater to more niche audiences.
TikTok’s unstoppable relevance and its competitors
As of 2021, TikTok’s owner ByteDance has been the leading unicorn company worldwide – with
200 billion U.S. dollars in company value, surpassing companies like Elon Musk’s SpaceX and Chinese retail giant Shein. According to brand value, the short-video giant does not overcome Google, Facebook, and Instagram yet, but it has made its way into
top three social media platforms offering the best social commerce experience as of 2022. In addition, TikTok reached the
highest engagement rates among other daily-used social media mobile apps. With users spending 95 minutes on average on the platform daily, not only did it lead the chart but also scored almost double than both Instagram and Facebook. Considering its highly competitive rates, TikTok’s upward development path is worth following.
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