Can we say we're all that surprised? The numbers are finally in, and it looks like TikTok will be eclipsing Facebook this year in ad spend. So what does it all mean?
In the six years since its launch, the ByteDance-owned social media app has accrued a groundbreaking 1 billion global daily users across 150 different markets worldwide. Quickly making a name for itself as a force to be reckoned with, the success of TikTok and the subsequent shift to social video has left Silicon Valley scrambling to keep up with the wheel being reinvented under their noses.
The proof is evidently in the pudding, with TikTok predicted to overtake Facebook in influencer marketing spend this year by Insider Intelligence. The news analyst reports that TikTok is on track to continue growing, and with predicted ad spend for 2022 clocking in at $774.8 million, it's a fair chunk of change more than Facebook's estimated $739 million.
Next up the ranks would be YouTube, which is predicted to rake in more than $948 million in influencer ad cash this year, though Insider Intelligence predicts that TikTok will be overtaking them too by 2024. It looks particularly likely considering the data on marketers themselves, which shows that while more ad dollars are still being spent with YouTube, the people spending the money have already been won over by TikTok. 46% of surveyed US marketers are using TikTok for influencer spending in 2022, as opposed to the 42.5% using YouTube, showing the industry is already jumping on board.
So how does ad spend fare when compared to their main competitor, Instagram? It looks like the team over at IG don't have to be too worried…yet. 2022 saw Instagram pull in triple the influencer marketing spend of TikTok, landing at a cool $2.23 billion.
Apple's App Tracking Transparency
Introduced in 2021, Apple's privacy technology App Tracking Transparency threw a major spanner in the works for digital advertisers. It didn't quite ban the collection of data, but it did require a consumer's consent before companies were able to share data with one another, causing a major shift in the AdTech market. Mergers and acquisitions began happening left and right and 2021 saw over 90 major deals as companies sought to grow their databases of first party information. TikTok, however, was a significant beneficiary of the move. The social video app blew up quickly, doubling the share of ad spend it captured as the big players in AdTech grew even bigger.
With The Drum reporting earlier this year that TikTok paid media had an ROI of 1.6x more than any other Nielsen measured media, and the return on ad spend doubling to $2.60 with earned impressions, it's clear that TikTok will continue its running theme of standout success in the ad spend space as well.
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