TikTok, the video app that focuses on creating unique and engaging content, has a chokehold on everyone nowadays, from Baby Boomers to Gen Zers. Since its debut in 2018, this social media platform has become a household name, growing into a new hotspot for advertisers.
It’s growing so exponentially that its global revenue is expected to triple by the end of the year. Their anticipated amount is a whopping $11.6 billion, more than Snapchat and Twitter combined, which only accrue $4.86 billion and $5.48 billion, respectively. Over half of TikTok’s revenue comes from U.S. ads alone.
Businesses are pouncing on their ad spot because of its incredibly diverse and creative platform. But with creative freedom comes the chance of inappropriate content appearing on someone's feed.
Although ethical problems arise with the kind of content that appears on the platform, companies are willing to take that risk to reach Gen Z's teenage audience.
And it’s worked out in their favor. On top of the AR-based and in-feed ads implemented last year, TikTok is introducing new ad types and has begun testing crypto-ads and search result ads in 2022 alone. They plan on creating more, squeezing every little last drop of money they can.
Their projected revenue might sound astounding, but $11.6 billion is just a drop in the bucket compared to competitors such as Amazon, Alphabet, and Facebook (now Meta), whose social media ads have accumulated over $200 billion in profit.
However, because it’s a young platform—it was created in 2018—TikTok has a good shot of catching up to its older, more profitable brethren in no time at all.