TikTok is the app taking over the world in the last few months. The app focuses on short videos remininicesnt of Vine. The big question in the digital space is “how can advertisers make money” and TikTok needs to find a way to monetize or else they could become the next Vine. (RIP)
TikTok is taking social media by storm. In August of last year, the Chinese media company ByteDance merged Musica.ly and TikTok closing the gap between creators around the world. TikTok is a short-form video and live streaming app. Musica.ly was a big lip-syncing app for teens in 2016 and hopes this merger will be beneficial to attract a wide array of creators and advertisers.
TikTok hit 1 Billion downloads
Last month, Sensor Tower reports the app has hit one billion downloads and was downloaded more times than Instagram in 2018. This could be another big realm for influencer marketing to promote a product or service in a short video. This type of partnership only benefits the influencer and brands, without TikTok being involved. TikTok is prepping to work with media companies and agencies to get a cut of the revenue.
A big question we may see answered this year is how will the advertising work on this platform where “every second counts.” Users are reminded of Vine and that app came to an end in January of 2017. Good internet things come to an end if they don’t find a way to monetize.
TikTok is embracing the #HashtagChallenge format and getting users to create viral content. This is key for brands because they can create major brand awareness by users posting reactionary videos to a video they posted. This causes a high level of engagement and can lead to brand ambassadors and great brand awareness campaigns. The challenge facing brands is you can’t measure the success of these campaigns directly because TikTok doesn’t have tractable links yet.
Younger people and teens are the main users of the app, these Gen Z’ers have major purchasing power. According to Forbes, “Gen Z is already on track to become the largest generation of consumers by the year 2020, and they account for $29 to $143 billion in direct spending. To get Gen Z on your brand means big business and TikTok may be the best means to reach these buyers.
Consumers trust TikTok influencers
The followers on TikTok tend to be more loyal and trusting of the influencers. When a brand partnership happens viewers are more likely to listen to the creator and purchase. Users like the authenticity currently in the app and that there aren’t ads like on Instagram and Facebook. This authenticity creates a challenge for advertisers who want to get into this space. Instagram was able to successfully integrate advertisements into their platform in the feed and now stories in the last couple years but will TikTok be able to do the same?
Users can also purchase in-app “coins” to send to their favorite creators. These “coins” are worth actual money. TikTok will face the challenge of implementing advertisements and keeping content authentic, loyal fan bases, and keep the overall goofiness.
For now, it’s good to keep TikTok in your radar and maybe try to get some creators to be brand ambassadors for your business.