How does TikTok make money? | TikTok Business Model

How does TikTok make money? TikTok was launched in 2016, the app has attracted more than 3 billion downloads and attracted a third of all social network users in a short period of fewer than four years. In fact, it also holds the record as the fastest growing social media platform ever. Do you wonder how TikTok got that achievement? This article will answer the question and also give you see some other views on the issue. Learn more!

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1. How does TikTok make money: TikTok’s business model

TikTok is one of the rare top social media platforms to emerge out of China while. While all major social media companies were born in the US before it comes into the picture. One of the other reasons why it has the great growth is how TikTok make money through the following types of ads such as TikTok Ads, In-feed Ads, Brand takeover Ads, Top view ads, Branded hashtags, and Brand effects.

1.1 TikTok ads

TikTok is known as a short video application used by people around the world. The creators took this feature and started developing it like any other social media platform. Advertising is one of the main ways how TikTok make money. However, there are different types of ads that advertisers run on TikTok as the TikTok advertising platform can provide a powerful platform for businesses large and small to advertise to millions of people around the world.

1.2 TikTok In-feed ads

In-feed ads are short video ads that are displayed in a user’s feed as they scroll through the “For You Page” which is filled with personalized content for the user. These ads are similar to those that appear in Instagram Stories and combine natively with the TikTok feed. Moreover, creating a full-screen in-feed ad that is attractive will stop users from overlooking it. This way could help TikTok earn money efficiently. With In-feed ads, users can comment, like, share and interact with the TikTok advertising videos.

1.3 TikTok brand takeover ads

TikTok Brand Takeover ads take up the entire screen as soon as the user opens the app. These types of ads are used to create widespread awareness and drive sales by showing them to their target audience. They also show up on the “For You Page” as still images, videos, or gifs with clickable links to landing pages within TikTok. It is effective to create wide awareness and drive sales because the ads are shown in front of the right audience.

1.4 TikTok top View ads

Top-viewed ads on TikTok are similar to TikTok Brand Takeover ads, except that they do not cover the screen as soon as the user logs in, and they show up in the first post in the feed after 3 seconds. These full-screen ads with autoplay and sound last up to 60 seconds, increasing brand visibility. These types of ads also help to increase brand exposure.

1.5 TikTok brand hashtag ads

Branded Hashtags ads that show up on a discovery page involve engaging users by asking them to make a dance video or do something else relevant to a particular product. After creating these creative videos, users post them with a predefined brand hashtag. When users click on the hashtags, it leads them to land pages on TikTok and a collection of other TikToks videos from the same hashtag challenge.

1.6 TikTok branded effect ads

Branded effects include custom stickers, augmented reality filters, and lenses that users can also add to their videos. TikTok allows business effects to last up to 10 days, giving users enough time to interact with the brand. It is a great and fun way to let users react to their business.

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2. How does TikTok operate

To learn how does TikTok make money, all video creators need to understand how this kind of app operates. After installing the app, users can start exploring videos immediately. However, to upload your video, one must first create an account by registering with an email address, phone number, or a third-party platform such as Facebook, Instagram, or Twitter. After setting up the profile, the user can navigate through various sections of the app as below:

• “Home”: It shows two feeds where the user can switch between For You and Following.
• “Discover”: It shows videos of users that have been tagged with a trending hashtag.
• “Create a video”: This opens up the record screen, where a user can record a video.
• “Inbox”: It allows all the user’s video activity to appear in one place.
• “Profile”: This is able to be seen by both the user and other users.

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3. Who are TikTok’s key partners?

When it comes to TikTok business model, people tend to think about how TikTok creates huge playgrounds for any users who want to become famous influencers. Besides, TikTok has paid partnerships with several celebrities and popular influencers from various social media platforms. In addition to celebrity and influencer endorsements, TikTok has also partnered with marketers who are distinguished professionals who could design, implement and track ad campaigns across specialties such as the following.

• Campaign Management Partners: They assist advertisers in capitalizing fully on the platforms ad offering with the help of cutting-edge technologies. Borscht, adMixt, Buzohero, and customer acquisition are some of the agents that fall under this partnership.
• Measurement Partners: They guide brands in analyzing and measuring the total impact of TikTok’s business solutions by providing premium services. Adjust, Nielsen, and AppsFlyer are some of these kinds of partners.
• Creative Partners: They have the technology and audiovisual skills to help businesses create advertising on a large scale. For example, Cooler, Canva, and Air Target are some of the prominent creative partners.
• Effects Partners: They know everything about TikTok’s AR offering, and tools, and specialize in producing and developing augmented reality effects. Ignite XR, Byte, and Genero are the platform’s established effects partners.
• Commerce Partners: They specialize in marketing techniques to facilitate merchants to establish and manage their businesses effectively. Shopify, Square, and Productsup are included in these partners.
• Sound Partners: Their expertise allows brands to lean on and create impact with sound. Some of them are The Elements Music and KARM.

Related articles:

– How to make money on TikTok in 2021

– How to go live on TikTok: Complete guides for newbies

From the beginning, the growth of TikTok has been rapid. In fact, because of its quick popularity and then they get the right plan for diversification strategy on how does TikTok make money. Hopefully, you can have a bigger view of this platform through these pieces of information. Mid-Man is always here if you need any further concerns about this kind of social media platform.