The social media video app charges more than $ 2 million for some one-day ads. The short video-sharing app in the U.S. is asking for more than $ 1.4 million in the third quarter to occupy its home page, according to a document in Bloomberg News’s possession. This amount jumps to more than $ 1.8 million in the fourth quarter and to more than $ 2 million during the holidays
These prices represent a significant increase compared to what TikTok charged just a year ago. , according to people who know the conditions. The total price has increased largely due to the growing customer base of the app. The app had more than 100 million monthly active users in the U.S. last August, up from 11 million in early 2018. TikTok estimates that anyone who buys this ad unit can generate 109 million impressions.
TikTok is not yet making much money from this user base and is still building its ad team. Advertisers have not yet dedicated large sums of their video budgets to TikTok, as they do for YouTube. But it’s only a matter of time before, ”said Brian Wieser, global president of business intelligence at GroupM, the advertising giant GroupM, to Bloomberg. Facebook, Instagram, Snap, Pinterest and YouTube all went through the same cycle: the increase in the number of users was followed by advertising sales.
Although TikTok’s advertising business is not yet as mature as of its major rivals, the owner of the app, ByteDance, is already one of the largest players in the global advertising market. China alone accounted for more than $ 20 billion in sales last year, and its global advertising sales are projected to approach $ 40 billion this year.
The U.S. advertising market is expected to grow more than 15 percent this year, which businesses that reopen after a pandemic are also supported. Internet companies like TikTok will be the biggest beneficiaries. Facebook traffic grew 48 percent in the first quarter, while Alphabet YouTube traffic grew 46 percent. (We have already written here about the change in the market situation recently.)
“We can expect ridiculously fast growth in digital advertising,” Wieser said. TikTok’s media offering gives an insight into where the company running the app says advertisers can benefit the most. The most valuable advertising space is the so-called top view, which is the first thing users see when they open the app. That could cost as much as $ 1.5 million on a national holiday in the third quarter and more than $ 2 million in the fourth quarter. The cost of the first ad slot in a user’s feed is less than half that, as the number of meetings with him falls below 50 million
Sponsoring a hashtag challenge on TikTok can cost up to $ 500,000 over three days, before licensing or paying the creators. TikTok’s biggest strength is its popularity among teenagers, which is also an obstacle to doing business. According to the media offer, about 45 percent of users are under the age of 18, but advertisers are less likely to advertise to minors than adults.
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