TikTok has moved well beyond its roots as a lip-syncing and dancing app, says new research from Insider Intelligence.
The highly-popular video-sharing app TikTok’s could see its advertisement revenue triple in 2022 to more than $11 billion, according to research from Insider Intelligence. That would put it on track to exceeding the combined sales of both Twitter and Snap.
The ByteDance owned app has risen to become one of the world’s most popular social media apps, with active users exceeding 1 billion.
“TikTok’s user base has exploded in the past couple of years, and the amount of time users spend on the app is extraordinary,” said Insider Intelligence principal analyst Debra Aho Williamson.
“It has moved well beyond its roots as a lip-syncing and dancing app; it creates trends and fosters deep connections with creators that keep users engaged, video after video. Advertisers want to reach a passionate, dedicated audience, and TikTok can deliver that.”
Williamson added that TikTok offers a unique approach for advertisers trying to engage with consumers.
“Another factor that will drive growth in ad spending is TikTok’s unique take on social commerce. It pairs marketers with creators to help content go viral, and that can drive enormous demand for products that advertisers want to promote.”
According to research from Bazaarvoice, nearly three-quarters of TikTok shoppers worldwide shop on TikTok when they stumble across something in the feed.
More than half of revenue from US
Insider Intelligence say that more than half (51.2%) of TikTok’s revenues will come from the US this year –giving the social network a 2.4% share of the US digital ad market.
They go on to say that starting next year, growth will slow to double digits, but TikTok’s US ad revenues will exceed $11 billion by 2024, raising its share of the market to 3.5%. Meanwhile, 46.7% of TikTok’s global ad revenues will come from the US.
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