ByteDance‘s Short video sharing app TikTok is set to record one of the highest revenue streams in 2022 to exceed its rivals social media giants Twitter and Snapchat combined.
TikTok’s advertising revenue is likely to triple to more than $11.6 billion outpacing Twitter with a projection of $5.58 billion and Snapchat $4.86 billion in 2022 according to a report by Insider Intelligence.
According to the analysis, nearly $6 billion of its revenue this year is expected to come from the US advertisers as they buck on the multi-billion Generation-Z market.
Advertisers have shifted their focus to the short video trend and are set to pour in cash to get to this audience. TikTok’s popularity with teens along with its push towards in-app shopping and social commerce is helping drive sales its revenue above its competitors.
While other social media apps have come with similar short-form video provisions for teens, TikTok is still a favourite app among US teens. The company has almost fully won the hearts of young social media users with even a record of about 16 per cent of users under 5 using the app according to a source by the guardian.
As of June 2021, TikTok had about 60 per cent of teens between the age of 16 and 24 while almost 50 per cent of its global population was under 34 years a milestone that has seen the social media app rise exponentially.
“TikTok’s user base has exploded in the past couple of years, and the amount of time users spend on the app is extraordinary,” says Debra Aho Williamson, principal analyst at Insider Intelligence, which compiled the ad spend forecast. “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.”
TikTok landed its billionth user in 2021 after four years of its global launch, thanks to the covid-19 period that saw a sharp rise in user downloads who camped on the app for entertainment. The 1 billion milestones are half the time it took Facebook, YouTube or Instagram, and three years faster than WhatsApp.
