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The research showed that TikTok is about to take 2.4% of the almost $250 billion that US companies use on digital advertising.
Within a short period, the video-sharing app TikTok has become the sweetheart in the marketing space, and its ad revenue is about to surpass its rivals, Twitter (NYSE: TWTR) and Snap (NYSE: SNAP). At the moment, TikTok is the latest song, the fashion in vogue, and the tastiest wine to many. The app keeps rolling out amazing features while onboarding more creators who are catching brands’ attention. The high interest and increasing users on the platform fuel its ad revenue, and TikTok is about to perform excellently over both Twitter and Snap.
2022 Ads Revenue for TikTok Is Set to Jump Over Combined Sales of Twitter and Snap
According to research by Insider Intelligence, TikTok’s ad revenue for 2022 may go as high as X3 to over $11 billion. On the other hand, Twitter is looking to realize $5.58 billion in 2022 ad revenue, while Snapchat is expected to see $4.86 billion in ad revenue in the same year. If that happens, the 2022 total advertising revenue for TikTok will stand tall against the combined sales of Snap and Twitter. TikTok is not relenting. The app keeps “gaining on some more-established digital ad sellers.”
The study revealed that TikTok is about to see an increase of 184% in its net US ad revenue in the current year. Specifically, the research said the video’s sharing app net US revenue would increase by $5.96 in 2022. After the addition, the report stated that the app will fall to a double-digital growth trajectory in 2023. About half of this year, TikTok’s ad revenue, which is almost $6 billion, is expected to come from the US.
With over 1 billion active users, TikTok is one of the world’s most popular social media apps. An analyst at the research firm, Debra Aho Williamson, commented. She noted that TikTok’s user base has greatly expanded over the past years. She added that users of the app spend a lot of time on the platform, generating more revenue for the Chinese-owned company.
Furthermore, the research showed that TikTok is about to take 2.4% of the almost $250 billion that US companies use on digital advertising. TikTok will be in charge of more adverts than both Snap, and Twitter combined with such a percentage. As a matter of fact, the percentage point is just a point behind YouTube.
TikTok Surpasses $1 Billion in the Number of Active Users
TikTok reached $1 billion in the number of active monthly users in September 2021. At the time, the app users have grown 45% up from mid-2022. While announcing the 1 billion active users, TikTok acknowledged its creators’ “creativity and authenticity.”
“Our global community is remarkable in its ability to reach millions of people, across generations. From music, food, beauty and fashion to art, causes, and everything in between, culture truly starts on TikTok,” wrote the company.
About a month before TikTok attained the $1 billion user milestone, there were reports that its parent company ByteDance was preparing for an IPO. Coinspeaker reported that ByteDance’s IPO would take place in Hong Kong in early 2022. This came despite Chinese regulators having upped their scrutiny game on local tech firms.