Everything you need to know in less than 50 words
The social media platform TikTok will triple its advertising revenue to $11.6 billion, surpassing the combined efforts of Snapchat and Twitter. According to eMarketer’s forecast, TikTok will increase its ad revenue from its 2021 numbers of $3.88 billion to $11.64 billion in 2022.
Tell me more
Snapchat lists its ad revenue at $4.86 billion. Twitter’s ad revenue is $5.58 billion, meaning TikTok will surpass their combined amounts in 2022. Analysts expect TikTok to double again by 2024, with ad revenue of $23.58 billion.
More than half of that revenue comes from the United States. YouTube is the number one social media platform by ad revenue, coming to $23.65 billion. TikTok will surpass the ad revenue of YouTube in 2024.
TikTok attracts so many users. It allows users to make creative videos, become TikTok famous, and continue their lives as social media influencers. It is also an excellent platform for small business owners. With this massive increase in ad revenue, small business owners that have a TikTok account will essentially have free advertising to millions around the world.
The growing commerce activity on TikTok allows small business owners to sell products straight from the app. Much like the Marketplace feature of Facebook, TikTok allows for the sale of products.
The average American spends 2 hours and 54 minutes on their phones each day. The amount spent on cell phones today makes social media platforms the best way to advertise yourself and your small business.
TikTok will increase its 2021 ad revenue of $3.88 billion to $11.64 billion in 2022. That surpasses Twitter and Snapchat - combined!
A study shows that six percent of TikTok users spend over ten hours a week on the app. This staggering number shows how TikTok can spend $11.64 billion on ad revenue. Eleven percent of TikTok users spend five to ten hours per week on the app, while another thirty percent say they spent less than one hour per week on the social media platform.
YouTube used to be the biggest video social media platform with millions of users. Then came Vine, the social media platform that specialized in short-video forms. This app did not last more than a couple of years. TikTok is similar to Vine in that it specializes in short videos, while YouTube has much longer videos.
Experts think that TikTok is surpassing the popularity of YouTube because of these short videos. The average attention span of Americans has dramatically decreased, with so much entertainment being available 24/7. This short attention span makes users not want to watch a fifteen-minute video on YouTube to be entertained. Instead, they opt for the 30-second video on TikTok.
This phenomenon is much like movies versus shows. A Netflix user is more likely to watch a series with 6, 1-hour episodes than they are to watch a 6-hour movie. Their attention spans have shortened, which means their brains cannot comprehend and pay attention to a 6-hour movie.
TikTok is very similar to these shorter episode series, while YouTube can be compared to a 6-hour movie. With the growing engagement, TikTok can triple its ad revenue. This tripling will help them surpass the ad revenue of both Twitter and Snapchat combined.
Digital marketing agency?
Analyze your ad account performance & reveal your account’s quality score.
Get exclusive CMO tips that I only share with email subscribers.