Foundations
TikTok was created in 2016 by Chinese tech mogul Zhang Yiming, who previously launched a popular news-aggregating mobile app called Jinri Toutiao. Zhang Yiming recognized the potential of emerging social media platforms – and the huge opportunities afforded by mobile-based video – and created a revolutionary new platform which quickly became a global sensation. He had a vision of creating a platform that could bring people together around the world and ultimately TikTok was born.
Jinri Toutiao served as an inspiration for his creation of TikTok, however, they are quite different. Jinri Toutiao relies heavily on algorithmic recommendations to tailor its newsfeed, while TikTok boasts a competitive video editing platform, enabling users to produce highly creative, personalised content.
Zhang Yiming sought to create a platform in which content was inherently shareable and users could easily engage with the content of others. While he was not a fan of the conventional ‘social network’ model of quick status updates and image-posting, he wanted to harness the power of mobile devices to deliver entertaining bites of visual content. This driving force led to the development of a platform which would revolutionise the internet.
By the end of 2016, TikTok was already generating buzz and was downloaded more than 45 million times in China alone. Soon after, the platform was launched internationally and quickly caught the attention of the global community. It has now been downloaded over 1.5 billion times and has an estimated 800 million active monthly users, making it one of the most popular social networking apps of all time.
Data and Insights
Data compiled by Sensor Tower revealed that TikTok was downloaded over 315 million times in the first quarter of 2020 while the app’s total downloads surpassed two billion in April 2020. Moreover, by the end of June, the app surpassed an incredible 2.6 billion downloads and generated a whopping $179 million in revenue. This means TikTok has not only become the most-downloaded app of 2020, but it is also the highest-earning non-gaming app for the year.
An analysis by Apptopia found that TikTok collated 2.6 billion monthly users in 2021 and is on track to reach 3 billion monthly users by the middle of 2021. Additionally, according to Parrot Analytics, the app ranked first in terms of social media engagement in 2020, with an average of 45 million engagements per day from users around the world.
It is worth noting that much of TikTok’s success is attributed to the platform’s highly intuitive and user-friendly interface, appealing content generation and publishing tools, and its innovative recommendation algorithms which connect the user with content they are more likely to engage with.
Expert Perspectives
Experts in the industry have praised Zhang Yiming’s vision and subsequent success of TikTok, commending the platform as both a successful business and a lucrative form of entertainment. A report published by Global Web Index found that 90 percent of users say that the app is “fun,” “enjoyable” or “satisfying.”
Alex Bellinger, Editor of Mobile Industry Review said “You only have to look at the success that TikTok has had in the last 12 months or so to see the impact of social media generally. It is no longer just about creating cool looking apps and playing games, what people want is connection, content and entertainment. TikTok provides all three and as a result has not just grown but taken over the world overnight.
John Koetsier, Contributing Writer at TechCrunch claimed that “Social media is the hottest business in the world right now by far, and Zhang Yiming’s vision of creating a platform that could connect people around the world has certainly been realised. He has demonstrated the power of mobile-based content and gives people the ability to express their creativity and connect with their peers.”
Insight and Analysis
It is clear to see that Zhang Yiming’s vision for a platform that would bring people together around the world has become a reality. TikTok offers users an incredibly intuitive platform that is easy to use and users have responded in turn, downloading and using the app in huge numbers.
Unlike other social media sites viewed as more ‘conventional’, users of TikTok have enormous freedom to create entertaining, entertaining content. This has created a highly engaged community of users, with high levels of engagement and interactions. As a result, other businesses have recognised the enormous potential of the platform and have begun to leverage the ad space to increase their reach and customer base.
The success of TikTok reaffirms the power of mobile-based technologies and how influential they can be for businesses looking for innovative ways to engage with their customers. As technology continues to advance, this type of platform is only likely to become more popular and may well be the go-to platform for brands wanting to reach consumers in the future.
The Economics of Tiktok
TikTok boasts an array of revenue streams which largely derive from advertising and in-app purchases. The company enjoys a 40% share of in-app revenue from users making purchases within the app. In addition, TikTok also has advertising partnerships with companies and brands which often result in highly lucrative sponsorship deals.
Indeed, TikTok advertising has become a powerful tool for companies to reach both new and existing customers. Promoting brands via the platform offers companies tremendous visibility, with the potential to reach millions of users. Moreover, the app’s highly engaged user base – particularly those aged 16-24- provides ample opportunity for brands to target younger, more digitally savvy individuals.
However, it is worth noting that TikTok is also facing increased pressure from regulators and has been subject to a number of criticism due to privacy concerns, censorship issues and accusations of mishandling of user data. As a result, there is a need for careful management of the platform to ensure that these issues are addressed and the core values of the platform remain intact.
The Impact of TikTok
Since its launch, TikTok has had a huge impact on the digital world, providing an incredibly intuitive video-sharing platform that has resulted in the creation of some incredible content. What is even more impressive, is the sheer number of users the app has acquired and how quickly the community has grown and flourished.
Interestingly, there has been a marked increase in the use of hashtags, trends and challenges, which has had a tremendous effect on how content is created and shared across other social platforms. As a result, TikTok is now seen as amongst the most influential social networks, and its influence permeates beyond the app itself to other parts of the internet.
It is no wonder that Zhang Yiming has been lauded for the success of the platform. He recognized the potential of emerging social media technologies and proceeded to create a platform that has revolutionised the way people consume and create content. It is a testament to his belief in the power of technology and its potential to bring people together and share incredible experiences.
Virality of Content
The secret behind TikTok’s success is its focus on creating an engaging user experience with the aid of its innovative algorithms. The platform is designed to surface content most likely to be of interest to its users, resulting in a highly personalized and interactive experience.
This allows users to more quickly and easily find content that appeals to them, and encourages them to engage with content that is ‘trending’. As a result, content is more likely to go viral as TikTok’s algorithms are adept at selecting content that is likely to generate views and engagements.
On the other hand, there are also well-defined standards which content must adhere to in order to pass on the platform. This means that false information and ‘fake news’ are less likely to be embraced by the community, encouraging the sharing of credible and reliable sources.
The combination of efficient algorithms and rigorous standards is at the crux of TikTok’s success as a platform, as it enables users to have confidence that the content they are accessing is both reliable and engaging.
Underlying Technology
The success of TikTok is also owed to the underlying technology that enables the platform to operate so effectively. Zhang Yiming had to navigate a number of challenges in order to bring the platform to fruition and it is safe to say that he achieved a tremendous feat of engineering.
TikTok runs on a For You algorithm, designed to provide users with personalized content suited to their interests and preferences. This algorithm takes into account a range of factors such as viewing history, interactions and profile information, which enable the app to curate content accordingly. Additionally, user-generated trends are also taken into account, allowing the algorithm to surface content which is likely to be of interest to other users.
Moreover, the technology used within the app enables users to create content quickly and easily. This empowers users to express their creativity are recording, editing and publishing content in mere moments.
Evidently, the technology behind TikTok is key for its success and emphasizes the importance it places on creating tailored, personalised content for users around the world.
