TikTok is set to take over the world.
Not only is the short-form video platform the most downloaded app but it was the fastest growing social media company in 2022.
Over the next four years, TikTok is projected to double its ad revenue by $7.4 billion. The ability to advertise to millions of viewers and reach a younger demographic has made TikTok one of the most popular apps to push ads.
By 2027, TikTok is projected to take over 37% of the ad revenue market share.
TikTok was fastest growing social media company by Ad Revenue in 2022
In 2021, TikTok was the most downloaded mobile app in the world.
The short-form video platform has attracted many advertisers in the last few years. Brands have used the social media platform to boost brand awareness by partnering with public figures and influencers to reach a younger demographic, primarily the Gen Z customers.
TikTok’s ad revenue has grown 26% in 2022, more than any other platform in the US.
The social media platform has been an immensely profitable business for advertisers, which has contributed to its overall growth. While Facebook (18%) and Twitter (22%) share a part of market, TikTok is the fastest-growing media brand worldwide. In 2022, the growth rate of the brand increased 215% globally.
Tiktok to overtake Meta & Youtube in social media ad revenue market share by 2027
TikTok has become one of the most valuable media and entertainment brands in the world. Since being released in 2016, the brand has become one of the top-10 biggest media and entertainment companies. In 2022, TikTok was valued at $43.48 billion.
Over the next four years, TikTok is expected to become the global leader in social media ad revenue market share.
By 2027, TikTok’s ad revenue share is expected to double, increasing from 7% to 14% while Youtube and Meta are expected to lose market share during that timeframe. On the other hand, TikTok’s Chinese counterpart, Douyin, is expected to increase as well from 15% to 23%.
Combined, TikTok and Douyin will command 37% of the marketing ad spend.
The leading brands on TikTok that are pushed through influencers include Netflix, McDonalds, Fashion Nova and Starbucks. Netflix in the most talked about brand on TikTok with 4,560 influencers mentioning the online streaming platform every day, according to a report by Statista.
Tik Tok ad revenue to more than double by 2026 to $13.8bn
Prior to TikTok, reaching younger audiences through advertisements wasn’t so simple. Now, the social media platform has opened doors for many companies looking to reach a younger target audience.
One viral TikTok video can reach millions of users overnight, which most online social media platforms can’t deliver. This year TikTok is projected to bring in $6.4 billion in ad revenue. By 2026, the ad revenue for TikTok is set to double, reaching $13.75 billion.
The ad revenue has steadily increased and will continue do to so over the next three years. By 2027, TikTok is projected to gain an average of $2 billion in ad revenue each year.