TikTok’s growth continues at an incredible pace, with the app’s ad revenue expected to surpass that of Twitter and Snapchat in 2022. TikTok has been the big winner of the pandemic, among social media platforms, growing at a much faster rate than its older, more established rivals. That growth is paying off, according to Reuters, as the company is expected to bring in more than $11 billion in ad revenue in 2022, more than Twitter ($5.58 billion) and Snapchat ($4.86 billion) combined. . The report also predicts that TikTok’s advertising revenue will reach $23.58 billion in 2024.
“TikTok’s user base has exploded over the past two years, and the time users are spending on the app is extraordinary,” Insider Intelligence analyst Debra Aho Williamson told Reuters. More than half of the company’s revenue is expected to come from the United States, a big win for TikTok, given that it was nearly banned from the United States during the Trump administration.
“Advertisers want to reach passionate and dedicated audiences, and TikTok can deliver that,” Insider Intelligence analyst Debra Aho Williamson said in the report.“ Another factor that will drive ad spend growth is TikTok’s unique approach to social commerce. It pairs marketers with creators to help content go viral, and that can generate huge demand for the products that advertisers want to promote .”
TikTok attracts advertisers
Despite its rapid growth, TikTok is still far behind Meta, whose ad revenue across all of its platforms — which includes Facebook and Instagram — stands at $115 billion in 2021. If TikTok hits its projected revenue, it will hold 1.9% of all digital advertising, compared to 21.4% for Meta. Google leads them all with 29%.
The revenue total is another sign of TikTok’s rapid success in the social media world. In March, it was revealed that Meta, Facebook’s parent company, was paying a conservative consultancy to promote an anti-TikTok agenda, a clear sign that the tech giant feels threatened by TikTok.
TikTok’s short-form video content and its algorithm attracted at least one billion monthly active users to the app last September. Its success has generated imitators, including Meta’s Instagrams Reels, which launched in August 2020. Reels grew out of a successful strategy Meta tried with Stories, which duplicated Snapchat’s most popular features, and suggests that Meta intends to face the threat of TikTok head-on.