The earliest sign of success was the 71 percent increase in adoption in just three months. Then, TikTok gained huge ad revenues. In fact, its ad viewership continues to grow at a phenomenal rate. This growth has led to a host of benefits for TikTok
TikTok has shorter video lengths
While YouTube has more videos to offer, TikTok users may prefer the short-form videos. TikTok has more than one billion monthly active users and offers a feed of algorithmically-generated short videos. With more users on the platform, TikTok is eager to facilitate ways to keep viewers in the app longer. YouTube’s own Shorts feature has given creators more time to present their content. After months of speculation and testing, TikTok has surpassed YouTube’s five-minute video limit. While its roots were in bite-size entertainment, TikTok has grown to compete with YouTube’s long-form content. It has been experimenting with longer video lengths for several years, with the first major step being three minutes long. Now, the app is rolling out a 10-minute limit to all users.
It uses smart SEO tactics
In a battle to gain attention from younger users, TikTok uses smart SEO tactics to overtake YouTube. Its organic reach is over 118%, far greater than that of YouTube, Instagram, LinkedIn, and Facebook. Take advantage of the high organic reach, and you will soon be in the “For You Page” (FYP) — social media’s version of Google. By posting your video at the right time, it will increase your chances of showing up in this personalized section.
It competes with YouTube for consumer spending
While YouTube dominates the mobile advertising market, TikTok is starting to make its mark in the consumer spending category. The company’s “Time Spent” metric only includes Android users. In the US and UK, however, TikTok has surpassed YouTube for the first time since June 2020, when it surpassed YouTube for the first time. However, TikTok still falls short of YouTube when it comes to ad revenue, trailing Meta, which predicts $115 billion in ad revenue by 2021. The ad business of TikTok still needs to catch up to YouTube, as advertisers want to see more robust tracking of consumer behavior. Brands also want to see more advanced targeting options and more third-party attribution vendors. The app’s popularity has prompted many to question whether the company is a serious threat to YouTube’s dominance. YouTube’s shorts, which are vertically-optimized videos of up to 60 seconds, are a significant threat to TikTok. TikTok has been flirting with a three-minute limit on its videos, though. The fact that the video length is shorter than YouTube’s has only increased its appeal.
It needs advertising revenue to make the metaverse materialize
While video games are the biggest source of revenue for Chinese technology giant Tencent, it is not clear whether it will be able to successfully create a metaverse with its apps. One possible solution would be building a network of highly interactive games under a single IP, or building an infrastructure for users to create their own games. While the idea is interesting, it remains unclear how it will be implemented once it is set up. However, a number of Tencent’s portfolio companies are working on some version of this, which could help TikTok realize its vision of a metaverse.
The future of the social network has been paved with advertising revenue, but a new wave of competitors is emerging. TikTok is sucking ad revenue from Facebook, and Apple is trying to counter that trend by requiring iOS users to give permission for their apps to track their online activities. This move is expected to cost Apple upwards of $10 billion by 2022. However, in the short term, advertisers and TikTok have a long way to go to see their vision materialize