More than 300 million new downloads in just 3 months, the revenue equivalent to Youtube, TikTok is becoming a force that can not be underestimated on social networks

Before the covid-19 pandemic, Alana Tsui, an influential social networking artist, probably never thought of joining and testing the TikTok app. Tsui, 31, like many others, refused TikTok, saying it was a teen app.

But things changed when the spread of the corona virus forced Tsui and others in New York City to stay home. At this point, Tsui feels she has more free time and can start to try something new.

She shared: “The city is blocked, everyone is at home and I have nothing to do, right now I feel Tik Tok is quite interesting …”. Now, one day Tsui can post up to four videos on this application platform.

Tsui’s story is a typical example of everyone over time. In just a few months, hundreds of millions of people around the world downloaded short-form video apps when the United States, Europe and elsewhere imposed strict restrictions to limit the spread of corona virus. For many, the TikTok app seems to have become an interesting place to relax when you’re too tired of the news about the virus or the economic damage it causes.

TikTok also captured this mentality, immediately offering some hashtags like “#HappyAtHome” to motivate some users and their parents to make videos. TikTok also seeks to promote its live stream platform with content that is gentle, accessible to viewers.

TikTok’s promotional hashtag in Vietnam is called “# Staying home is fun”

According to the Senor Tower, the TikTok app has been downloaded 315 million times between January and March, and the analysis firm has said no app has recorded such a high download in a quarter. TikTok currently has a total of 2 billion downloads, double the total of the previous 15 months.

The company has also successfully recruited influencers (social media influencers) to join as Hong Kong content creator Taylor Taylor. She said TikTok has been taking an approach since last year and offered to take part in building content on the platform. Richard now has more than 300,000 followers on Instagram (owned by Facebook) and more than 1.1 million registered on YouTube (owned by Google).

At the beginning, Richard thought that this app was not suitable for her age. Later, with the outbreak of corona virus and Richard was also caught up in the 15-second videos of TikTok.

She said, “Even older people of different generations are participating in TikTok. A lot of the songs of my generation are being used on this platform.” Richard joined TikTok in early April and has about 15,000 followers. Currently, TikTok sends weekly emails to Richard to help her identify which hashtags are working well and from that can capture current trends.

Breaking the record for new users is seen as a big win for TikTok’s company, ByteDance.

The record breaking number of new users is seen as a big victory for TikTok’s company, ByteDance. Previously, this application was the only social media platform of a Chinese company allowed to operate outside the territory.

The record is constantly being knocked down

ByteDance’s mobile applications raised $ 157 million between January and March, according to Sensor Tower. Nearly 90% of that money comes from China and almost completely comes from Douyin, the Chinese version of TikTok. That is a record number for a quarter of ByteDance, up 423% over the same period last year and up 50% from the previous quarter.

The first week of February is the week of Douyin’s largest hours ever, 3 billion hours is the amount of time users spend on the app – up 130% from the weekly average. in 2019, according to analyst firm AppAnnie.

In China, live streaming is a very popular form. Influencers often make money by receiving virtual money while live streaming. Wiktoria Marszałek, account manager of Nanjing Marketing Group, a company that helps develop brands and sales in China, said: “Generally speaking on Chinese platform applications, people often have a habit. get used to giving virtual money to content creators. ”

For example, Douyin users often buy donuts or virtual hearts to give away to content creators or influencers during a live stream. All of this virtual currency makes up revenue for ByteDance.

The consulting firm R3 estimates ByteDance makes about 140 billion yuan ($ 19.8 billion) in advertising revenue in 2019.

However, the Chinese company still makes most of its money from advertising. The consulting firm R3 estimates ByteDance made about 140 billion yuan ($ 19.8 billion) in advertising revenue in 2019. “In many categories, it far surpasses both Tencent (TCEHY) and Baidu (BIDU). to become the No. 1 advertising platform in China, said Greg Paull, director of R3.

Douyin and TikTok’s sales are “skyrocketing,” said Randy Nelson, an analyst with Sensor Tower. Sensor Tower considers TikTok and Douyin to be essentially the same application, based on similarities in branding, marketing and user experience.

When it comes to non-game apps, TikTok ranks third in March for worldwide sales, after dating apps Tinder and YouTube. Also included in the top 5 are the new streaming applications from Disney (DIS) and Netflix (NFLX)

TikTok could become a new way to advertise and market products in the future

According to staff ByteDance, TikTok may not have as much revenue as Douyin because it only started applying the money receiving through advertising and live streaming last year. However, with the success of Douyin, people still hope TikTok can use that model to develop.

According to Didday, TikTok is also starting to test ads on its application platform. Advertising revenue will be split between TikTok and influencers, similar to what was done in China on Douyin.

Like many other social media companies, TikTok predicts the corona virus will deal a blow to ad revenue in the United States, Europe and other markets where it operates. Immediately, this short video application began looking for ways to “donate” to health organizations in exchange for updating pandemic information.

According to Didday, TikTok is also starting to test ads on its application platform

Before moving to New York, Tsui lived in Hong Kong where she earned about $ 1,500 a month working with brands and advertisers to promote their products to 74,000 followers on Instagram.

But it seems that the ads on Instagram in New York are no longer effective. Now that people are mostly talking about TikTok, brands are therefore targeting influencers and advertising on TikTok.

Tsui joined TikTok in early April and currently has about 27,000 followers. “I am sure TikTok will be a new way to advertise and market products in the future,” Tsui said.