Short-form video platform TikTok has taken over as the major online advertising platform in the U.S.
The video-focused social network’s massive growth has seen it displace the two dominant ads platform, Google and Meta (Facebook) in the U.S. online advertising market to become the most preferred app to run ads.
In the U.S., Google and Meta (Facebook) accounted for a combined 48.4% of U.S. digital ad spending in 2022, while TikTok annual revenue from ads in 2022 saw a whopping 200% increase from the previous year.
In 2021, it generated $4 billion in advertising revenue and analysts have predicted that its ad revenue will increase by 55% in 2023.
The platform is booming with more than 1 billion users, as it is currently changing the course of marketing with its exceptional features, which has seen it become the most preferred platform for brands to run ads.
One notable thing that sets TikTok apart from other platforms in the online advertising market is that it provides marketers with a level playing field when it comes to reach and engagement.
Unlike other platforms, TikTok’s unique algorithm gives every video an equal chance to go viral, regardless of the number of followers or how popular the content creator is.
Its dominance in the ads market doesn’t come as a surprise, as it has gone ahead to assist brands with ad creation on its platform.
Last year, it launched a “creative center”, which is designed to help advertisers understand what is working on the platform in real time.
With the creative center, brands can explore a showcase of the top-performing ads, view details on the latest platform trends, and search through TikTok’s audio library to help inspire their creative needs.
Recall that TikTok was the most downloaded app in 2021, with 656 million downloads and eight new users every second.
Initially launched for the Chinese market under the name Douyin in 2016, the app has become a global sensation amassing millions of users every year.
It should be recalled that in January 2022, Investors King reported that TikTok was named the world’s fastest-growing brand by Brand Finance Global 500 2022 report.
With a whopping 215 percent growth rate in brand value, the app firmly stands among the most valuable media entertainment brands worldwide, valued at $50 billion.
