US ban looms, yet TikTok’s ad revenue soars
TikTok’s advertising revenue is set to exceed $30bn this year, despite looming uncertainty over a potential US ban.
WARC Media’s latest insights suggest that this could jeopardise almost $12bn in ad spend.
The platform’s ad business is growing rapidly, helping to cushion the blow should a ban take effect in the US, which accounts for a significant portion of its total revenue.
TikTok’s global advertising revenue is projected to reach $32.4bn by 2025, with an impressive 24.5 per cent year on year growth.
However, the question of whether the platform can maintain such growth remains tied to the ongoing regulatory uncertainty in the US.
The social media video app briefly went down in January, following a Supreme Court decision to uphold a law banning ByteDance services over national security concerns.
In the face of a potential ban, platforms like Instagram and Youtube are expected to benefit, but TikTok’s global dominance in short form video continues to attract huge investment for advertisers.
Despite the potential disruption in its largest market, TikTok’s user engagement is through the roof.
Users worldwide are spending an average of 35 hours per month on the app, nearly double the amount spent on Instagram.
As the app continues to grow, 1.59 billion people engage with TikTok per month, with 57 per cent using the platform’s search function to explore products and brands.
TikTok’s impact goes beyond engagement, with Amazon sales benefiting from its advertising.