TikTok Has Become The Newest Player In Paid Social
TikTok, an app where users post videos, has become one of the most popular apps in the social media space. The United States government had concerns if the app was safe to use. Oracle has submitted a bid with TikTok to become the trusted technology provider for users in the United States. Advertising through sponsored posts has become a very prominent way to reach target audiences. This deal will allow businesses to continue to advertise through the app.
An article from CNBC explains that TikTok has become a major threat to other social media platforms in the United States. Companies that use Paid Social will now have to dip into their budgets that they spend on Snapchat, Facebook and Instagram ads. The pressure is on for these other platforms. If TikTok ads perform well, advertisers will shift their spending toward TikTok which means less money for their competitors.
According to research from CNBC, TikTok has 100 million active monthly users in the United States and roughly two billion downloads worldwide. Advertising on this platform is growing in popularity as more businesses move their advertising in this direction. Similarly to how paid social ads use what websites you browse to target their audience more efficiently, TikTok’s algorithm has the ability to process what content you look at while on the app. For example, someone who follows and watches a lot of fishing videos is more likely to get served fishing or outdoor advertisements while on the app.
Partnering with and paying social influencers is a supplementary method businesses are using to reach a larger audience . TikTok has an influx of users with a massive reach. Most notable on the app is Charli D’Amelio. At just 16 years old she has over 87 Million followers and has received a total of 6.6 Billion likes combined on all of her posts. Big name brands such as Dunkin Donuts and Hollister have partnered with her to use her reach as a method of advertising. The value on this is massive, simply due to its reach. Companies are reaching more people with a single post sent out by D’Amelio than they typically reach with a spot on TV. Smaller companies partner with other influencers and users as well. Many users, teenagers in particular, have found a way to monetize off of their followings and their reach.
This is just another example of what we continue to see in the advertising world. As new trends and apps come into the constantly changing world of tech, new opportunities follow. It is important for both companies and advertisers to be aware of change and be willing and able to adapt to them.