In 2022, tech companies have lost A LOT of money. But TikTok might have cracked the code. It is predicted that the platform will generate more than $10 billion in advertising revenue this year. This would surpass Snapchat and Twitter.
TikTok recognized that social media is all about how much time you spend on an app. TikTok can grab and hold users' attention more than any other app. The average TikTok user spends 96 minutes per day on the app.
Each minute that a user spends time on TikTok instead of Snapchat or Facebook equals more advertising revenue TikTok can steal from its competitors. Although TikTok may not be making as much as Meta and Google, it is still growing rapidly and showing resilience during economic downturns.
TikTok is a popular platform for companies to advertise their products. The popular hashtag #TikTokMadeMeBuyIt has been viewed almost 30 billion times. Companies like Nerf even have a Chief TikTok Officer.
The Takeaway: TikTok's run since the pandemic has been extraordinary. One analyst stated that the company is “eating the world.” TikTok's advertising business is growing rapidly, but some companies claim they still view TikTok data with caution. TikTok's Internet presence is growing rapidly, but there are still concerns about its privacy policies and bot traffic.
