TikTok is a popular Chinese social media network that focuses on short-form video content. It creates a variety of challenges to tap into its users’ creativity and develop compelling (if not addictive) content that is accessible via an infinite feed. TikTok’s main source of revenue is advertising, giving it an attention-based business strategy.
AI Social Media
TikTok challenges are accompanied by captivating music tracks enhanced with effects and filters, and AI algorithms that maximize content production, curation, and recommendation.
At the start of 2018, the company had grown at an exponential rate, with over 500 million users. Facebook has taken notice and is rumored to be working on its own version, dubbed Lasso!
TikTok Business Model
According to Bloomberg, ByteDance, the firm that owns TikTok, has raised $3 billion in capital from SoftBank and other investors, valuing the company at $75 billion. According to CB Insights, Byedance is the most valuable Unicorn, surpassing Uber.
“TikTok is a place for short-form mobile videos,” according to the TikTok website. Our objective is to use mobile phones to capture and present the world’s creativity, knowledge, and valuable life events.
TikTok invites people to share their passion and artistic expression through their films, allowing anyone to be a creator.” If it weren’t for the fact that TikTok’s goal is to tap into people’s creativity, it wouldn’t appear to be anything remarkable. To understand why TikTok is different, we’ll have to peek behind the scenes at the firm that owns it: ByteDance.
What TikTok Money Came From?
TikTok makes money through its TikTok Ads Manager advertising platform. From then, marketers may use TikTok to launch their branding efforts. While we don’t know exactly how much money TikTok makes, we do know that it’s a lot. We know that TikTok’s owner, Bytedance, made as much as $17 billion in 2019.
- Targeted advertising generates advertising revenue (similar to YouTube)
- Allowing content creators to monetise their work on a user-generated platform is crucial to the platform’s long-term viability.
- A subscription model from the platform that curates the greatest short-form content for unique, longer-form content.