The TikTok Saga

By Joana Falcão. Posted on October 9, 2020

While TikTok is in the news in several international media due to the app's blocking and security, it is going through a larger expansion and it is currently available in more than 154 countries worldwide, with 800 million monthly active users (Source) (of which 90% of them access the app on a daily basis - Source). 

TikTok is considered as one of the world’s most used social platforms and it was the most downloaded non-game app worldwide, with more than 2 billion installs outperforming the likes of WhatsApp and Facebook (Source). 

Due to the particular situation, we are experiencing worldwide, this platform has become even more pronounced and used in the daily life of the users. Not only among young people but also among adults and seniors. And because of that, TikTok opted to introduce a self-serve ad platform for advertisers. But unlike other platforms, the app comes without the baggage of heavy advertising. They implemented different ways a brand could advertise. The most popular approach seems to be the branded hashtag challenges. This type of campaign consists in encouraging users to create videos around a specific hashtag - the brands preferred route to viral videos. 

There’s also take over ads, in-feed video ads, top view video ads and branded lenses. But the focus remains on the “tiktokers”. They are seen as influencers and brands are pushing partnerships in their direction to promote hashtag challenges or products. This focus is closely related to the behaviour of its users: people are predisposed to buy and experiment with products after watching someone use them in a video. 

The app’s popularity is expanding around the world, but India remains a key market for TikTok: it is TikTok biggest driver of downloads, representing 18,8% of installs worldwide. However, the recent measures of the Indian government to ban TikTok will have a huge impact on TikTok revenues. They consider that these apps are "involved in activities that are detrimental to the sovereignty and integrity of India" as well as to its defence and security. As Indians are leaving TikTok, many Indian Homegrown app platforms such as Sharechat and Roposo have seen a huge surge in new users since a ban on their Chinese rivals. 

Another country that has already expressed its intention to ban TikTok is the United States - their second-largest and fastest-growing market, representing 8,7% of TikTok’s total downloads (Source). ByteDance made a tentative deal to create a US subsidiary called TikTok Global, part-owned by the US entities Oracle and Walmart, but even so, Trump decided to ban TikTok. However, a federal judge granted a preliminary injunction against the Trump administration order to ban the app. The injunction only suspends the decision to ban TikTok from Google and Apple Stores. The remaining restrictions set to enter into force in November have not been suspended. TikTok’s stay in the United States is still uncertain. And since the willingness to ban app on American soil has been demonstrated, its revenues have fallen. 

 With these measures, TikTok is facing hard times, topped by the several competitors that have emerged around the world. On the advertiser's side, this shows that it is risky to put all the “eggs in one basket”, so an integrated digital strategy is a must. There are other means to reach the TikTok audience, such as Instagram Reels and Youtube Shorts, as going to gaming apps, programmatic advertising, etc, with the advantage that these can ensure greater safety and reliability.