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TikTok Business Strategy: Why It’s a Must for Brands

TikTok Business Statistics: How it Impacts Brands

In today’s digital age, social media platforms have become a crucial part of a business’s marketing strategy. As each platform caters to different audiences and demographics, companies must choose the right platform that fits their target market.

One platform that’s been gaining popularity recently is TikTok. With over a billion active users worldwide, it has become a go-to platform for brands looking to reach younger audiences.


TikTok’s user base is mainly composed of Generation Z, with over 60% of its users being below 30 years old. As these young users make up a large portion of the platform’s user base, it’s no wonder that brands are looking to leverage the platform to advertise their products.

TikTok’s algorithm is optimized to show users content that they’re interested in and gives brands the opportunity for product advertisement and product placement. Product advertisement on TikTok is different from traditional advertisements because it’s more organic and based on storytelling.

Influencers on the platform create videos that feature the brand’s product or service in a context that resonates with their followers. The video could feature the influencer using the product or showing its application.

This type of advertisement does not feel like a forced sales pitch, but rather a conversation between a friend and a follower. TikTok’s influence on brands and consumers is not limited to product advertisement.

Its algorithm also gives smaller brands an opportunity to reach a wider audience. Unlike other social media platforms, TikTok’s algorithm favors content that’s engaging and entertaining, rather than highlighting popular accounts.

A small brand could produce a video that goes viral on the platform and gain thousands of followers.


One of the main motivations for brands to use TikTok is its reach. With over one billion active users worldwide, TikTok offers a platform for brands to potentially reach a massive audience.

The platform’s algorithm is designed to favor engaging content over popular accounts, offering new brands with varied audiences an opportunity to showcase their products. TikTok’s reach is not limited to young audiences but has expanded to include older generations.

TikTok has also become a platform for exposure. According to a survey conducted by Oberlo, 20% of users found new products and services on the app, and 61% of the surveyed users followed a new account based on recommendations from TikTok.

TikTok’s product advertisement and product placement options give brands the opportunity to reach a wider audience, making it easier for TikTok’s users to discover new products.

TikTok Ad Revenue

TikTok’s success as a social media platform has translated into financial gains for its parent company, ByteDance. According to SensorTower’s report, TikTok’s net revenue has grown 500% YoY since its launch and has reportedly earned $39.4 billion in total revenue as of 2021.

TikTok’s rapid growth in users and popularity has been the catalyst for its significant revenue growth. The majority of TikTok’s revenue comes from ad revenue, with estimates suggesting that it accounts for 98% of the app’s revenue.

According to eMarketer’s forecasts, TikTok’s ad revenue will surpass Snapchat’s ad revenue by 2023, making it one of the fastest-growing social media platforms in the advertising space. TikTok’s ad revenue is these days is mainly driven by businesses looking to connect with TikTok’s younger audience.

Brands on TikTok can use different ad formats, including in-feed ads, brand takeovers, and sponsored hashtag challenges, among others. TikTok’s ad revenue breakdown shows that the US makes up the majority of the app’s revenue, followed by China and Europe.


In conclusion, TikTok’s reach and influence are undeniable. The platform’s user base and algorithm offer brands an opportunity to reach a wider audience and potentially discover new products.

TikTok’s growing ad revenue is proof that businesses are turning to the platform to increase their online presence. Whether it’s product advertisement or sponsored hashtag challenges, the possibilities for brands are endless.

TikTok’s rapid growth and success in the advertising space have placed it among other established social media platforms. As brands continue to explore options on the platform, TikTok’s revenue growth will continue to rise.

TikTok Usage Statistics: The Growth of the Platform

TikTok has been making waves on the social media scene since its inception in 2016, with its unique user-generated short videos format and exploding popularity among younger audiences. The platform, initially known as Douyin in China, has since exceeded all expectations, outperforming other social media giants in terms of downloads and user growth.

In this article, we’ll explore TikTok’s user statistics, estimated annual users, and its projected growth.

TikTok User Statistics

Since its global release in 2018, TikTok has had an impressive number of downloads across different app stores. As of February 2021, TikTok had been downloaded over 2 billion times, with India and China leading the pack, accounting for almost one-third of downloads.

The app has a strong presence in Southeast Asia and has been steadily growing in popularity in the US. In terms of user volume, TikTok’s growth has been nothing short of phenomenal.

By mid-2020, it had surpassed the 800 million active user mark, cementing its place among the top social media platforms in the world. The platform’s popularity has exploded during the COVID-19 pandemic, with user engagement and content creation both skyrocketing.

As of 2021, TikTok boasts of more than 1 billion active users worldwide. TikTok has become the preferred social media platform for Generation Z, and as per the latest reports, they make up the majority of its user base, with over 60% of its users in the USA aged between 16 to 24.

However, TikTok’s influence as a legitimate marketing platform continues to expand to different demographics and age groups.

TikTok Estimated Annual Users

TikTok’s explosive growth shows no signs of slowing down, with its user base expected to climb even higher in the coming years. It has been projected to reach 1.2 billion monthly active users by the end of 2021, according to eMarketer reports.

In addition, TikTok’s 2022 US user base is anticipated to reach 78.3 million (up from 56.6 million in 2020), according to eMarketer’s report on social network usage figures. The same report states that TikTok’s growth will be fueled by its popularity in younger age groups, as well as Gen X adults, who are increasingly joining the platform.

How to Earn Money on TikTok

TikTok’s growing number of users has caught the attention of businesses seeking to advertise their products and services through the platform. However, it is not only businesses that are cashing in on TikTok’s success, as content creators or influencers can also earn money through various ways offered by the platform.

TikTok Creator Fund


TikTok Creator Fund is a program designed to pay eligible TikTok creators for their content. The fund was launched in July 2020, and it rewards creators for their views, engagement, and overall engagement on the platform.

To be eligible to join the Creator Fund, TikTok creators need to be at least 18 years old, have at least 100,000 followers, and have at least 100,000 video views in the last 30 days. The payment structure of the Creator Fund is not straightforward, as TikTok assesses the creator’s content quality, audience size, and performance before assigning a rate to their content.

However, the fund system is an excellent opportunity for creators to earn a consistent, reliable income from their videos.

Other Ways to Earn Money

For content creators that are not eligible for the Creator Fund, there are alternative ways to earn through TikTok. Some of the available options include:

Advertising: Content creators can join a TikTok ad platform, share it on their videos, and earn a commission on resulting sale or traffic.

Affiliate Marketing: Affiliate marketing is the process of promoting a product or service through a unique link on TikTok and earning a commission from sales. Brand Sponsorships: The influencer marketing space on TikTok has evolved in recent years, with brands reaching out directly to creators for sponsored content.

Donations: Some viewers may donate money to their favorite creators through a virtual currency system on TikTok. Consulting: Content creators with a large following can leverage their expertise and offer consulting services to other creators, businesses, or individuals looking to grow their reach on TikTok.

Selling Products: TikTok content creators can also sell branded merchandise or physical products such as e-books, courses, or webinars on the platform.


TikTok’s user base and popularity have seen impressive growth during the platform’s short existence. As TikTok expands its reach to a diverse audience worldwide, inevitably, new opportunities for content creators and businesses emerge as well.

Whether it’s joining the Creator Fund or exploring other earning options, there’s plenty of ways content creators can earn income from the platform. With its growing user volume and projected growth, TikTok remains a platform full of potential for businesses and content creators alike.

Why TikTok Is a Good Marketing Strategy

TikTok’s popularity has been steadily increasing over the past few years, and it’s not just because of the viral dance trends or challenges that take over the internet. TikTok’s unique algorithm, user base, and features make it an optimal platform for businesses looking to use social media in their marketing tactics.

In this article, we’ll delve deeper into why TikTok is a good marketing strategy and the TikTok business strategy behind it. TikTok’s Marketability

One of the reasons why TikTok is such a great marketing platform is because it’s tailor-made for marketability.

The platform’s discovery algorithm is built to help users discover new content, even from smaller creators, and every video on the platform has an equal chance of going viral, making it a level playing field for all. By nature, this means that marketing strategy plays a pivotal role and can truly help brands stand out.

The platform’s unique algorithm presents a massive opportunity for brands that are looking to reach new audiences and increase their reach. Brands can create organic, entertaining content that could feature products or services in a way that resonates with TikTok’s audience.

The platform does not allow traditional ads, and therefore brands need to be creative with how they present their products and services.

Rapid Growth in Advertising and Marketing

TikTok is a young platform but has experienced rapid growth in its advertising and marketing space. Although the platform does not share the exact revenue numbers, recent reports suggest that its revenue has skyrocketed significantly.

In 2020, it generated approximately $540 million worldwide through in-app purchases, making it the highest-earning year for the app to date. As a result of this, many businesses are experimenting with TikTok as a marketing platform.

Brands continue to test TikTok’s advertising capabilities by running campaigns and investing in sponsored content. As more companies look to replicate and experience the success of these campaigns, more brands are flocking to the platform to take advantage of TikTok’s marketability further.

The TikTok Business Strategy

The TikTok business strategy involves marketing tactics and the promotion of brands, products, and services through the platform. While it may be tempting to jump straight into advertising on TikTok, it’s important to understand that it’s a unique space that requires a different approach and user engagement.

Marketing Tactics

One of the most popular marketing tactics on TikTok is influencer marketing. As previously mentioned, TikTok’s audience base greatly comprises younger generations and Gen Z.

This demographic often follows influencers and creators, making them an essential element to the platform’s organic content. By leveraging influencer marketing, businesses can use creators’ accounts to get their products or services in front of their followers.

TikTok’s advertising also offers brands an opportunity to create video advertisements that seamlessly blend into users’ feeds. The platform also offers sponsored hashtag challenges and brand takeovers that allow a brand to take over the TikTok interface for a day.

TikTok’s advertising capabilities extend to in-feed videos, and its cost structure is flexible, making it accessible to small and larger companies alike. Organic viral content is still one of the most valuable methods of marketing on TikTok.

Brands can create exciting and engaging content that resonates with their audience, and with a little creativity, the potential for virality is high. Viral videos on TikTok have led to immense brand recognition from the platform’s massive user base, and it’s not uncommon for small creators to go viral overnight and bring their associated brands along for the ride.

Promotion of Brands, Products, and Services

TikTok is an excellent platform to promote brands, products, and services for different reasons. The platform has a massive user base, and its algorithm allows brands to reach audiences that may not be present on other social media platforms.

The organic nature of TikTok’s content makes it easier for businesses to humanize their brand and connect with their audience on a more personal level. Brands can also use the platform to experiment with different video formats, allowing them to be creative and show off their personality.

Even small businesses can leverage the platform to promote their products and services and gain significant exposure. In conclusion, TikTok’s marketability, rapid growth in advertising and marketing, and the TikTok business strategy make it a good marketing strategy for businesses looking to expand their reach and connect with a younger demographic.

The platform offers unique opportunities for brands to engage with their customers through sponsored content, influencer marketing, and creative organic content. With its increasing popularity, TikTok is quickly becoming an essential platform to include in the social media marketing mix.

In summary, TikTok’s unique algorithm, diverse user base, and marketability make it a valuable marketing strategy for businesses seeking to expand their reach and connect with a younger demographic. TikTok continues to experience rapid growth in its advertising and marketing space, with brands experimenting with various tactics such as influencer marketing, sponsored content, and organic viral content.

With its potential for virality and increasing popularity, TikTok is an essential platform that businesses must consider in their social media marketing mix to stay competitive. The key takeaway is that leveraging the creative opportunities of TikTok is essential for brands to market themselves effectively to the platform’s massive, engaged audience.

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