TikTok ad revenue predicted to hit $11 billion this year, more than Twitter and Snapchat...

midian182

Posts: 7,887   +81
Staff member
In a nutshell: If there's one metric that really illustrates TikTok's meteoric rise in recent times, it's the app's ad income. The video-sharing platform's global advertising revenue is predicted to exceed Twitter and Snapchat combined this year and looks set to catch up with YouTube in 2024.

TikTok last year surpassed the ad takings of that other teen/young adult-aimed app, Snapchat. It's set to outperform Twitter by the end of this year, too. Research firm Insider Intelligence predicts that TikTok's revenue will triple in 2022 to $11 billion, more than Snapchat ($4.86 billion) and Twitter ($5.58 billion) combined.

Should TikTok continue on its current trajectory, it is expected to catch up with YouTube and its $23.6 billion in ad revenue by 2024.

Despite its popularity, Chinese-owned TikTok has faced plenty of controversy over the years, from Reddit's CEO calling it "spyware" and "fundamentally parasitic," to Joe Biden's staff being told to remove it from their phones in 2020. Donald Trump's administration tried to get ByteDance to sell its international operations to a US company; a group of state attorneys general launched an investigation into TikTok and its effect on young people; and it was one of many Chinese apps banned in India two years ago.

But TikTok is unlikely to be concerned by all the negative press in the US, given that more than half its revenue this year ($6 billion) is expected to come from the United States.

TikTok already has over 1.5 billion global users and is capturing the younger market that Meta craves but keeps on losing, though it still has a way to go before catching up with Facebook (2.9 billion users) and Instagram (2 billion users) or their ad revenues of $85 billion and $82 billion, respectively. However, Facebook still felt nervous enough to hire a lobbying firm that painted its rival as a foreign-owned app and "a real threat."

Permalink to story.

 

Dimitriid

Posts: 2,204   +4,242
And so the cycle continues: As youtube starts to drop in popularity because of the weight of corporation demands regarding content and revenue sharing, a new service takes it place at first *because* it can escape the endless copyright claims and push for curated corporate content (And creators curating their own content to fit accordingly or quickly being algorithmically outsed)

But wait a couple of years and Tiktok will want some of those big corporate bucks: first warming up to longer form content and better discovery, then buckling down to the demands of corporate media companies wanting to promote their properties and use the copyright system to remove anybody else gaining traction, then some other apps comes along side stepping most of the issues and the cycle repeats.
 

QuantumPhysics

Posts: 6,308   +7,247
And so the cycle continues: As youtube starts to drop in popularity because of the weight of corporation demands regarding content and revenue sharing, a new service takes it place at first *because* it can escape the endless copyright claims and push for curated corporate content (And creators curating their own content to fit accordingly or quickly being algorithmically outsed)

But wait a couple of years and Tiktok will want some of those big corporate bucks: first warming up to longer form content and better discovery, then buckling down to the demands of corporate media companies wanting to promote their properties and use the copyright system to remove anybody else gaining traction, then some other apps comes along side stepping most of the issues and the cycle repeats.

And this is what "The Free Market" does.

People are able to choose to leave Social Medias whom they feel are lower quality or annoying and move to others. Either Facebook and Youtube change their oppressive policies or they lose revenue and lose viewership.

The Free Market has auto-corrections built in.

The Free Market is always right.
The Free Market has spoken.
 

m4a4

Posts: 2,891   +3,699
TechSpot Elite
Last I heard, they pay their creators pretty poorly from ads, so this would seem to line up.

I wonder if it will still trend as steep upwards next prediction now that most places are opening up again (and kids shooouuuld be spending less time on it)...
 

Squid Surprise

Posts: 5,335   +4,980
"But TikTok is unlikely to be concerned by all the negative press in the US, given that more than half its revenue this year ($6 billion) is expected to come from the United States."

Ummm.... that's EXACTLY why they SHOULD be concerned by the negative press! If Americans decide to stop using TikTok, they'd lose half their revenue!!

You are unconcerned with bad press when the country doesn't contribute anything to your coffers!
 

FaTaL

Posts: 78   +119
99.98% of tiktok is trash. junk food for the brain. pure id!0t attention w h o r es. theres .02% from some credible people with valuable information though. takes forever to find this small %, do the math.
 

Aaron Fox

Posts: 153   +90
And this is what "The Fee Market" does.

People are able to choose to leave Social Medias whom they feel are lower quality or annoying and move to others. Either Facebook and Youtube change their oppressive policies or they lose revenue and lose viewership.

The Fee Market has auto-corrections built in.

The Fee Market is always right.
The Flea Market has spoken.
Fixed that typo for you. That's what I do. I have built-in corrections.
 

SirDigby

Posts: 894   +757
TechSpot Elite
Last I heard, they pay their creators pretty poorly from ads, so this would seem to line up.
The Tiktok ad structure is quite different from Youtube, where you'll get an add every 4-5 videos and they're not 'attached' to another persons video, so brands aren't 'associated' with a particular channel or type of channel, the next video is just chosen by the Tiktok algorithm.
Where Youtube each advert is for a certain channel or type of channel (gaming, kids, fashion etc.), and you might get 1-3 ads on a video. (But if I remember right you only get adds once every 5 mins or 10 mins or something?)
 

Bamda

Posts: 347   +172
99.98% of tiktok is trash. junk food for the brain. pure id!0t attention w h o r es. theres .02% from some credible people with valuable information though. takes forever to find this small %, do the math.
They said the same thing about television decades ago. LOL