TikTok expands its commercialization channels, reaches external cooperation and launches new features

The TikTok short video application continues to be popular in overseas markets. Data shows that TikTok currently has 732 million monthly active users worldwide, and more than 100 million monthly active users in the United States. Data analysis company App Annie previously predicted that TikTok's average monthly active users in 2021 will likely reach 1.2 billion.

Therefore, as the user scale expands, TikTok has also attracted more and more advertisers. In order to maximize the monetization capabilities of advertising services, TikTok is seeking to add a series of new in-app shopping tools while continuing to explore its e-commerce potential.

Launch in-app shopping feature to improve advertising effectiveness

Among the new features launched by TikTok recently, the first new tool option is "Collection Ads" , which is similar to the product list in YouTube videos. It can help brands combine their product catalog lists and brand videos to guide users to find related products from their video clips.

Second, TikTok will also add "dynamic product ads ," which are personalized product recommendations based on users' consumption activities in advertisers' apps and websites.

In addition, TikTok will also launch promotional and display "Tiles" . The former can help advertisers add customizable sales and promotional reminders in TikTok video ads, and the latter will work with content creators to add thumbnail purchase links of related products under the creators' product promotion videos.

The second Showcase Tiles is actually similar to the in-app purchase function of Douyin in China ↓

Achieve external cooperation and build a "moat" for traffic monetization

It is worth mentioning that most of TikTok's audience is under the age of 24, accounting for as high as 59%, of which 13% of users are between 13 and 17 years old, which means that TikTok will have the potential to continue to expand and grow as these users grow older.

However, young people are more interested in novelty and have lower loyalty to brands or platforms. Moreover, as top creators move between different video platforms, TikTok will easily lose its existing customer base. This is also one of the biggest risks TikTok faces today.

Therefore, TikTok needs to establish its own business model as soon as possible and improve its monetization capabilities, so as to retain content creators and consolidate its user base through generous rewards.

To this end, in addition to launching the above-mentioned marketing functions, TikTok is also actively seeking cooperation with external organizations, including the LiveRamp data connection platform and IPG Mediabrands media marketing company .

According to the socialmediatoday website, TikTok 's cooperation with LiveRamp will help advertisers who have already adopted LiveRamp's services to provide consistent and personalized advertising to TikTok users; the collaboration with IPG Mediabrands will help IPG's partner brands expand their promotion opportunities on the TikTok platform, and provide TikTok's content creators with more business opportunities, assisting brands in their advertising efforts.

Snapchat, the social media app that lets you read and disappear, recently announced a similar partnership with Gannett Media to attract brands that use Gannett's services to promote through the Snapchat platform.

It can be seen that TikTok's efforts to realize its commercialization are not only the needs of its own development, but also the general trend. Therefore, in the long run, TikTok's maintenance of the above-mentioned external partnerships will help it to develop steadily, increase profits, and maintain its existing market position.

TikTok

Monetization