The TikTok social network is still on the rise, and has even come to thumb its nose at its competitors. Its global advertising revenue is expected to exceed that of Twitter and Snapchat combined in 2022.
While it is impossible to doubt the growth of TikTok users in the face of other social networks, the development of income is another matter. The ByteDance application remains young in the digital landscape, and its monetization still immature. Ad formats are few, and not all advertisers have added TikTok to their media plans yet.
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A report by eMarketer, however, believes that the application for sharing short videos should triple advertising revenue. In 2021, TikTok raised 3.58 billion euros. For 2022, the firm estimates that this figure will climb to 10.75 billion euros, slightly more than that of Twitter and Snapchat combined.
Projected TikTok ad revenue through 2024. Source: eMarketer.
This impressive growth is due to the efforts made by the social network to expand its advertising offer for nearly a year. TikTok recently created a Shopping section in partnership with the Shopify platform. In order to allow advertisers to easily launch campaigns, another partnership with Vimeo and Canva was launched this summer. With Jumps, TikTok has also created bridges with third-party apps and new ad formats. In order to support social commerce practices, ByteDance has even launched a shopping application, called Fanno.
Although these advertising formats are still recent, they should win over many advertisers, and thus allow TikTok to triple its revenue. The strongest progression should take place in the United States where we expect +50% spendings. On the other hand, advertising revenues should not triple each year. They are estimated at €16.66 billion for 2023, €21.77 billion in 2024.
Just like Facebook at one time, TikTok needs to multiply the number of advertisers to grow financially. With more than a billion active users, the social network already has serious arguments. It must therefore offer a robust and effective advertising platform, as well as formats adapted to various objectives.