TikTok doubles ad revenue despite global adspend downturn
TikTok will conveniently double its ad revenue in 2022 from 5 billion dollars to over $ 10 billion despite the cut in global ad spending.
According to a report from GroupM, which looks at media trends across 2022, the short-form video-sharing platform has doubled its advertising revenue in 2022.
The report links TikTok’s success to the declining advertisers’ demand for competitors such as Meta and Snap, particularly since there isn’t as much of a notable drop at businesses where TikTok is less of a direct competitor, such as Microsoft.
At $10 billion global revenue, TikTok would surpass Twitter and Snap combined.
While this represents significant revenue growth, it however falls short of the initial projected revenue for the outgoing year. The company had initially projected revenue to range between $12 billion and $14.5 billion this year, but owing to a sharp reduction in global ad spending, it has cut its revenue projection for the year by 20 percent. This brings the expected revenue closer to $10 billion, according to the Financial Times.
Following the challenges posed by the cut in advertising spending, TikTok overhauled its US operations. As part of the restructuring which has led to the layoff of about 100 staff, North America General Manager Sandie Hawkins will be transferred to TikTok Shop, the company’s e-commerce channel, while Blake Chandlee, an executive based in Austin, Texas, will assume Hawkins’ role on an interim basis, the FT said, citing five people with knowledge of the changes.
TikTok generated nearly $4 billion in revenue in 2021, mostly from advertising representing, a 142% increase year-on-year. It had 1.2 billion monthly active users in Q4 2021 and is expected to reach 1.8 billion by the end of 2022. In China, TikTok is accessed by over 600 million users daily and it has been downloaded over three billion times
RECOMMENDED ARTICLES
Comment
No comments found.