Key TikTok Business Statistics That Can Help You Earn More
TikTok may be a platform that separates the people who use it from the people who remember landlines, but there is no denying its influence over what drives both content and commerce for all ages. Influencers on TikTok can not only make a good deal of money but potentially full careers off the content they create.
By knowing how TikTok works, you can essentially create your own business through the app. If you think about how many hours you spend on the phone, let alone just the time dedicated to watching TikTok videos, it is a breeding ground for advertising and consumerism.
TikTok Business Statistics
The TikTok app has been downloaded more than 3 billion times and is estimated to have reached 1.8 billion people by the end of 2022. Needless to say, with the reach it has, there was no other option but to monetize it.
If you are still wondering whether or not TikTok has a viable business plan or if it is worth advertising on it, here are some factors to consider.
- Influence: One out of two TikTok users, especially those considered to be part of Gen Z, are likely to buy something they see while using the app. Through product advertisement or product placement, exposing any product to the TikTok audience can be a cash cow.
- Motivation: The reach of TikTok is vast, but it is also projected that 81% of its users are on it to be exposed to new brands or products. Small videos can have a big impact, especially when customers are actively seeking out guidance for what to buy next.
- Visibility: Your phone is constantly being bombarded with running ads and banners, however TikTok videos, which essentially can replace ads, are nearly six times bigger than standard ads, and often you don’t realize you are watching an ad as products can be included in a funny video or testimonials.
TikTok Ad Revenue
In 2021 alone, TikTok increased its annual revenue by 142% to reach $4.6 billion. By the end of 2022, it had upped that increase to 200% and generated over $11 billion in registered ad revenue.
TikTok Ad Revenue Breakdown
TikTok Projected Ad Revenue
TikTok Usage Statistics
There is something to be said for a platform that is projected to have been downloaded over 3 billion times. In order to get that many downloads, the extensive reach and sheer user volume that must be considered is almost incomprehensible. It has over 1 billion users and is still growing.
TikTok Estimated Annual Users
How To Earn Money on TikTok
Put your influencer hat on as TikTok can be more than just a fun viewing experience, but also a great side hustle. If you are already using the platform, why not try to make some extra income? TikTok makes its money through ads, but you can make money on TikTok in some of the following ways.
- TikTok Creator Fund
- Affiliate marketing
- Brand sponsorships
- Offer consulting
- Sell your own products
Why TikTok Is a Good Marketing Strategy
TikTok as a platform is seamless in its marketability. It separates itself from the herd as it uses a unique discovery algorithm that gives every video an equal chance to go viral. This is revolutionary because the popularity of the content creator is no longer the biggest factor.
Because of this, there is rapid growth in both social media presence and advertising revenue. This also leads to advertising and marketing experimentation and evolvement as brand potential is now seemingly unlimited.
Final Take: The TikTok Business Strategy
This may be a long article about short videos, but essentially the TikTok business strategy is that of a marketing strategy. It uses its platform to promote brands, products or services. TikTok employs several marketing tactics including influencer marketing, TikTok advertising and creating organic viral content.
FAQHere are the answers to some commonly asked questions about TikTok.
- Is TikTok a profitable business?
- In short, yes, TikTok is a profitable business. It increased its annual revenue by 142% to reach $4.6 billion in 2021 and by the end of 2022, it had upped that increase to 200% to generate over $11 billion in registered ad revenue.
- Why is TikTok a good marketing strategy?
- TikTok is different from other social media platforms because it uses a unique algorithm that gives every video an equal chance to go viral. This is revolutionary because the popularity of the content creator is no longer the biggest factor. Because of this, there is rapid growth in both social media presence and advertising revenue.
- Is TikTok still popular in 2023?
- Yes, TikTok is not only projected to make roughly $18 billion in revenue in 2023 but also gain more users. The $18 billion in revenue projection is $7 billion more than the $11 billion in revenue earned in 2022.
- What is TikTok's target audience?
- TikTok has over 1 billion users which proves it doesn't discriminate. Its audience ranges between the ages of 13 and 60, but its largest demographic would belong to Gen Z, who are currently between the ages of 8 and 23.
- What is the business strategy of TikTok?
- To put it simply, the TikTok business strategy is that of a marketing strategy. It uses its platform to promote brands, products and services. TikTok employs several marketing tactics including influencer marketing, TikTok advertising and creating organic viral content.
Information is accurate as of Jan. 20, 2023.
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