TikTok is a social app used to create and share 15-second videos, mostly of people lip-synching to popular songs, dancing and viral challenges. With a TikTok account, you can watch, like, share and create your own video content.
Overview
Formerly known as Musical.ly, Tiktok was founded by the 37-year-old Zhang Yiming, the CEO of ByteDance, in September 2016. It became China’s first truly global success in social media.
TikTok still goes by the name ‘Douyin‘ (抖音, literally “shaking sound” in Chinese) inside China. Phones registered in China only have access to Douyin and cannot access or search content posted on TikTok and vice versa.
User Audience
TikTok unseated Instagram as the top free app in the Apple Store in 2018 and currently remains in the top five positions of the free app charts.
It has over 1 billion global monthly active users. Gen Z (13–21-year-olds) ranks the highest with the 16-year-old, Charli D’Amelio, being the most famous having 108 million followers as of today.
The average monthly users in the U.S. and Europe are 100 million, with 17 million in the U.K., 11 million in France, and 11 million in Germany.
Strategic Use
Like many other apps, TikTok’s major income is from advertising.
Companies and organizations aiming to target the younger generation including Gen Z and the Millennials, need to invest in TikTok.
Below are some of the companies with top marketing campaigns on TikTok:
Chipotle, Mucinex, Charlie’s Angels, Kool-Aid, Kroger, Gymshark, Walmart, TooFaced, Calvin Klein and EA Sports.
Washington Post is among the most successful political organizations on the app, simplifying the news and adjusting it to the TikTok culture.
In a holiday update, on China’s New Year of the Ox, Tesla announced its software upgrade with the integration of TikTok.
TikTok is a place where brands can be discovered. TikTokers love to shop, share their thoughts on recent purchases, and discuss the online consumer experience. This combination of an active, engaged community and discoverability makes TikTok the perfect platform for brands to be part of the latest holiday trends and moments.
Current State and Challenges
TikTok’s growth globally has been a bumpy and challenging road.
India banned TikTok over morality issues. Here in the U.S., TikTok agreed to pay a $5.7 million fine to the Federal Trade Commission over allegations the app illegally collected personal information from children under age 13 without parental consent, in violation of the Children’s Online Privacy Protection Act.
A TikTok’s star, Dazharia Shaffer, 18, took her own life on February 8, in Baton Rouge, Louisiana. Dazharia had more than 1.4 million followers.
The Trump Administration issued an executive order last fall, claiming that TikTok posed a threat to U.S. national security as part of the US-China trade war.
Microsoft, Oracle and Walmart have been in negotiation to become major shareholders of a U.S. based TikTok company on national-security grounds.
On Wednesday, February 10, White House press secretary Jen Psaki mentioned the Biden administration has not taken a “new proactive step” in the process. Psaki added that the Biden administration is comprehensively evaluating risks to U.S. data, including those involving TikTok.
TikTok stock is not available until ByteDance establishes its IPO. The company is now worth $75 billion, according to Pitchbook, making it the most valuable privately held company in the world.
Despite the challenges, it’s safe to say, TikTok is here to stay and grow.
Very informative