Deciphering the rapid growth of Tiktok contributed to Facebook blowing away 200 billion USD in market capitalization in just 1 day

Today, the need for entertainment in a short period of time is increasingly popular, especially with young people. Realizing this, Chinese technology company ByteDance has created an application with similar functionality to Google’s Youtube, but the duration of each video is much shorter. The app has resonated not only in China but around the world, so much so that it became the target of a ban in the United States. That is Tiktok – a short video application that is very popular with young people around the world.

Tiktok is an entertainment application launched by ByteDance in the Chinese market in December 2016 under the name Douyin and quickly received in the country. In just about 1 year since its launch, this application quickly has 100 million users with over 1 billion video views per day. 9 months after the release date in China, Douyin was put on the global app store by ByteDance under the name Tiktok.

It didn’t take long, Tiktok quickly took the number one position of free apps on the AppStore in many countries around the world, with 104 million downloads, by the end of the first quarter of 2018. By October of the same year, The app has reached 1 billion downloads globally (not counting some Android users in China). Overcoming Facebook, Youtube and Instagram, in 2018 and 2019, Tiktok became the most downloaded application on the AppStore, available in 150 countries around the world at that time.

By the second quarter of 2021, there were more than 2 billion downloads of Tiktok from the App Store and Google Play.

What makes Tiktok so popular is the fact that they help users create and share videos of very short duration (from 15 seconds to only about 3 minutes), bringing relaxation and comfort. Instead of having to watch long movies, users can watch and share clips of very short duration; this saves a lot of time, especially for many young people who don’t have the patience.

41% of Tiktok’s users are between the ages of 16 and 24, and 90% of these use the app daily. This shows that Tiktok meets the entertainment needs of teenagers, helping them relieve the pressures of study and work very quickly.

Tiktok has created a lot of trends, including creating funny videos, memes (jokes) or lip-syncing clips with funny actions. These trends bring different ways of enjoyment to users, while attracting a large number of celebrities to participate, especially stars in the entertainment industry.

Thanks to Tiktok, their number of followers has grown tremendously in a short time, bringing in huge amounts of money from advertising. In March 2019, Tiktok signed a multi-year cooperation contract with the American Professional Football League (NFL), thereby increasingly asserting its name in the US.

Tiktok’s parent company, ByteDance, has a revenue of up to $34 billion in 2020 and spends a lot of money on advertising for their pet app. Therefore, it is not difficult to understand when in August 2021, the number of downloads of Tiktok has reached 3 billion; 1 month later, they continue to hit 1 billion users. The position of Facebook or Youtube is heavily influenced by Tiktok, when the number of views and users of this application is gradually overwhelming them.

Despite being so famous, but Tiktok also faces a lot of accusations, including videos that violate fine customs and habits, cause addiction to young people, or most seriously, bring global user data to China. .

The number of young people spending too much time on their phones for Tiktok is increasing day by day, while a lot of inappropriate content is posted too much. In 2020, US President Donald Trump, concerned that the presence of Tiktok would reveal user information in the country and affect national security, issued an operation ban for this application for 45 days. .

Mr. Trump also asked ByteDance to sell Tiktok again within 90 days to an American company; However, both orders were later revoked. However, concerns about Tiktok are not unfounded; This is still a big question for authorities in many countries around the world, although ByteDance has repeatedly denied this.

Although it is only about 4 years old, what Tiktok has achieved is really a dream for any application in the world. Possessing a huge number of users and video playback time, Tiktok has been gradually replacing long-standing applications such as Facebook and Youtube in entertainment.

However, the fact that this application is addictive as well as providing inappropriate content is being noticed by many countries. In addition, the concern about the disclosure of user data is also an allegation that ByteDance has not given a suitable explanation. Therefore, Tiktok still has a lot of points to overcome to become the application of the future with the ability to completely replace traditional social networks and video channels.

The growth of Tiktok is currently causing Facebook to be extremely headache. Shares of this world’s largest social network dropped by 25% on February 3, corresponding to more than 200 billion USD in market capitalization.

According to Yahoo Finance, Facebook’s parent company, Meta, is constantly experiencing bad news. After reporting unfavorable results last week, shares of the world’s largest social network have headed lower. Meta’s total market cap has fallen below $600 billion while Bytedance’s valuation is said to have surpassed $400 billion.

Many experts believe that Meta (Facebook) currently has 3 main problems to solve. The first is that they are losing users to the competition of other social networks like Tiktok. Next, Apple’s revision of its privacy policy makes it difficult for Facebook to profit from advertising.