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TikTok’s Strong Growth Ignites Competition With Youtube & Facebook

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The growth of TikTok, a Chinese social networking service (SNS) company, is tremendous. It is predicted that advertising revenue will triple this year. A short 15-second video is captivating the world. Users are truly addicted to TikTok. The social media advertising market is dominated by American companies such as YouTube, Facebook, Twitter, and Snapchat. However, they were also very surprised by the growth of TikTok. They are heating up their enthusiasm to follow TikTok.

On the 26th, Bloomberg, a US economic media outlet, reported that TikTok’s ad sales will reach $12 billion this year, citing market research firm eMarketer. It significantly exceeds the combined sales of Twitter and Snapchat last year.

Of course, it falls short of the American social media advertising giants. Last year, YouTube’s ad revenue reached a whopping $28.85 billion. Meta also posted sales of over 115 billions. 97% comes from advertising. However, meta revenue is the sum of sales from service apps such as Facebook, Instagram, WhatsApp, and Messenger.

But everyone is nervous about the tremendous growth rate. Last year, advertising revenue was around $4 billion. Although the online advertising market is quite mature, it is showing explosive growth. This year, we are introducing various advertising models that have proven their performance on YouTube and Facebook. In May, TikTok creators were allowed to take part of the ad revenue that is inserted between content. We also started operating an advertising model based on actual performance such as clicks and impressions. By 2024, it is expected to earn the same level of ad revenue as YouTube.

Above all, user loyalty is high. According to eMarketer, last year, TikTok users used TikTok for an average of 22.8 hours per month. It is much higher than Facebook (16.8 hours). This year, it is expected to increase by 30% compared to last year to 28.7 hours. It has even surpassed YouTube. In April, the average daily usage time of TikTok users in the United States was 45 minutes and 8 seconds, surpassing YouTube (45 minutes and 6 seconds) for the first time.

Due to this situation, YouTube and Facebook interrupted TikTok with ‘follow’. A short-form video function was quickly installed in the platform. YouTube released ‘Shorts’ in July 2021, and Facebook released ‘Reels’ in February this year. In particular, YouTube is showing remarkable results by demonstrating the know-how it has accumulated as a video platform. Within one year of its release, the total number of views exceeded 5 views. Recently, more than 30 billion views are being viewed on average per day.

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