Investing in TikTok: Is It Worth the Hype?

Investing in TikTok: Is It Worth the Hype?

July 1, 2020, Author: mystic-admin_@

TikTok started its life as musical.ly and afterward experienced an extraordinary rebranding to give us what we have come to know today.

 

Beginning as a relatively obscure, It now has roughly 800 million monthly users, and is accessible in 154 nations and 39 different dialects.

 

As of 2020, SensorTower reports that this app has been downloaded more than 1 .5 billion times. Furthermore, It was the seventh most downloaded mobile app of the decade ending in 2019.

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With download numbers giving no indication of dropping, It is now being considered as the future’s biggest social network.

 

 

It looks like it could become a major player in just about every market in the world. It isn’t a network for engaging with friends (like Facebook and Instagram), it’s a place where people get entertained.

 

 

 

But if you are already managing Instagram, Facebook, and other platforms for what reason do you have to invest time into yet another platform?

 

 

There are plenty of reasons with respect to why you should look to this app for your next opportunity.

 

Kevin Mayer, the chairman of Disney’s head of streaming, resigned to become the CEO of TikTok the app that has exploded in popularity during the pandemic. “The magnitude of this opportunity was just something I couldn’t pass up.” He cited gaming and music as two expansion possibilities.

More interestingly, It was the third most downloaded application behind WhatsApp and Messenger however came ahead of Facebook and Instagram. This implies TikTok is turning into a significant threat to Facebook.

 

Now the question arises “What kind of advertising options are available there?

 

4 types of Ad formats in TikTok:

 

 

Brand takeover:

Image, GIF, or video ads that allow one brand to dominate a specific topic for the day.

 

In-feed native video:

Vertical 9-15 second video ads that show up on the “For You” page.

 

 

Hashtag Challenge:

Create sponsored hashtags to encourage user-generated content, engage users and attract influencers.

 

 

Branded lenses:

Create 2D or 3D lenses that users can try out for themselves.

 

One of the challenges for this app, though, is to be able to monetize the platform. It also needs to allow its influencers to be able to earn money either from advertising or the views that they get from their audiences.

But thanks to over 1.5 billion monthly active users, TikTok’s revenue topped US$17 billion last year, with a staggering $3 billion in net profit. This is a platform intended for the universe of influencers, content creators and marketing tycoons.

 

Paid advertising is another thing on the system and brands are still discovering what they can accomplish with the products it gives. However, it’s the organic content campaigns that are creating the most achievement.

 

In case you’re certain that your target audience is utilizing it and your brand is fit for creating engaging content on this sort of platform, at that point it may be an ideal opportunity to begin using the network.

 

TikTok, formerly known as ByteDance, is still privately held, meaning its shares are not available on the stock market yet.

 

Since it’s not possible to buy its stock from the stock market, there might be other possibilities for investors to invest in ByteDance pre-IPO. It’s unlikely that there will be another funding round in the short-term, waiting for ByteDance to become public seems to be the simplest route to invest in TikTok.

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