TikTok began to enjoy the benefits of global business.

Editor’s note: This article comes from the WeChat public account “Zhixiang Network” (ID:passagegroup), author: Liu Di Qing.

TikTok’s rapid global growth is giving it opportunities.

Even TikTok’s competitors come to the door and want to launch new products on its platform. Among them, Instagram began to find new users on TikTok.

On May 25, according to India’s Economic Times, since December last year, Facebook’s Instagram has been posting built-in locals on TikTok’s “For You” page (customized video content based on user preferences) Video ads.

These video ads cover multiple languages ​​such as English, Hindi, French, and Japanese, from 16 in January 2020 to around 70 in March, and more than 300 in April. In May, nearly 200 such promotional videos have been released.

Gautam Mehra, chief data officer of Dentsu Aegis Network, a communications group, said that between November 2019 and February 2020, the proportion of advertising on the TikTok platform increased by a maximum of 60% year-on-year. Instagram is one of the many advertisers driving this trend.

Once, in order to attract users, TikTok has also placed a large number of advertisements on other social networks such as Facebook, Instagram and Snapchat. According to media reports, in 2018, TikTok’s advertising expenditure in the United States was 1 billion US dollars.

Now, TikTok has transformed, and the global social giant has become its customer.

A giant who has never left

Once, Chinese companies had to open up local markets when going overseas, and they had to advertise on Facebook, Google, Instagram and Snapchat.

In order to win international attention, Chinese companies are naturally willing to invest in overseas platforms for marketing. Facebook is a high-quality marketing platform. The company relied on advertising to make a lot of money. Last year alone, advertising revenue was close to US$70 billion, accounting for 98% of total revenue.

In 2018, Facebook received total revenue of about US$5 billion from Chinese advertisers, accounting for 10% of its total sales. According to data provided by market research company Pivotal Research Group, this meansIt means that China has become Facebook’s largest advertiser besides the United States.

Facebook also has several official advertising dealers in China, specializing in serving Chinese companies that want to advertise on Facebook.

Chinese companies are also betting on Google, another giant in digital advertising. According to “The Information” report, in 2018, Chinese technology companies vigorously promoted their products overseas, resulting in Google’s total revenue growth in mainland China and Hong Kong, Macao and Taiwan regions exceeding 60%, and revenue exceeding 3 billion US dollars.

For this reason, Google expanded the scale of its advertising business team in China. According to the media quoted insiders, in 2018, Google established more than 20 advertising centers in China, and the scale of the advertising team serving small customers has doubled. To 200 people.

Source of Snapchat image: Telegraph

Instagram purchase on TikTok

Now, the former “gold master” is going to be launched on the Chinese social media platform.

Fengshui turns, and Instagram may already have a sense of crisis, feeling that TikTok may soon exceed its number of users and start advertising for itself on competitors’ platforms.

In April, according to data released by research portal Statista, since Instagram was founded 10 years ago, it currently has approximately 1 billion monthly active users worldwide. TikTok has only been in operation for 3 years, but already has 800 million monthly active users.

Instagram picture source: Panda Security

Based on data released by eMarketer in January 2020It shows that Instagram’s user growth has shown signs of slowing down to 4.5% since 2020, which is lower than the 5.4% previously expected.

“Instagram is trying to win over those who do not have an Instagram account on TikTok before TikTok starts to snatch its advertising revenue.” said Abhishek Asthana, founder of advertising agency Gingermonkey.

The brand naturally also took a fancy to the huge traffic pool TikTok.

During India’s blockade due to the outbreak, Dettol launched a handwashing challenge on TikTok, which attracted 50 billion views. “Shortly after, Unilever’s Lifebuoy launched a similar event on TikTok, which received 20 billion views within a week,” Asthana said. “There is no other digital platform that can provide such Grades.”

Sik Singh, vice president of profit for TikTok India, said: “The brand is aware of the potential of TikTok, the platform has a wider coverage, a diverse audience and innovative advertising solutions, attracting brands to cooperate with us.”

Most marketers also place ads on Facebook and Instagram, and the new nature of TikTok provides another option for the platform.

Globalization bonus

Overseas, the way for TikTok to penetrate the local market is through internet celebrities. The audience of overseas celebrities tends to be younger, so the user group of TikTok is also younger, which directly promotes the marketing of TikTok’s celebrities overseas.

The short and fast presentation method unique to short videos has quickly become an important tool for internet celebrities to expand their business and promote products. TikTok provides brand owners with diverse marketing models such as open-page advertising, information flow advertising, and challenge mode.

Until June 2019, TikTok began work on the online testing of its self-service advertising placement platform, and gradually expanded the number of test market areas.

In November of the same year, according to Digitalday reports, TikTok began to vigorously promote its self-service advertising placement platform in the US and European markets. Advertisers in the United Kingdom, France, Italy and the United States can already self-serve ads in TikTok’s advertising platform.

The self-service delivery model also solves the difficulty of advertising. For example, one of the challenges faced in ad placement on Snap in the early days was the difficulty of buying ads. Snap has no self-service entrance. Instead, the sales team is responsible. The company has always balanced between high operating costs and high entry prices.

InitiallyIf you want to place an ad on Snapchat, it will cost $1 million. TikTok’s self-service advertising buying platform provides brands with a more flexible daily budget. Brands can pay for advertising through credit cards, which allows TikTok to include customers with smaller marketing budgets.

The advertising format displayed by the brand on TikTok is no different than what is seen on Instagram. When users scroll through the platform content, they will see the content of the brand. Second, user content on TikTok often evolves into a relay challenge. If a challenge incorporates the right amount of skill and fun, it will be copied by other TikTok users around the world. TikTok will also help brands create and spread these challenges through payment.

TikTok advertising image source: The Drum

Just like companies create Facebook or Instagram pages, brands also have the opportunity to create brand pages on TikTok. When users receive messages pushed by the brand in the information stream, this includes TikTok’s combination of relevance and paid placement. Operation.

It is reported that TikTok’s self-service advertising service mainly uses CPC (pay-per-click) and CPA (pay-per-action) models and advertiser billing. At the same time, it provides audience data packages to advertisers. Gender, region, interest and other audience portrait dimensions, self-directed advertising.

Marketing analysis platform Singular counted data from May to November 2019, and the brand’s total advertising on the TikTok platform increased by 75 times.

Compared with the relatively mature commercialization process of Douyin in China, TikTok’s overseas commercialization is still just beginning.

At the end of May, Zhixiang interviewed an agent of TikTok, whose company is located in Hangzhou. According to him, the interest of overseas brands in TikTok is very large, and since this year, he has received a lot of orders, especially the overseas game companies. However, he also said that the commercialization of TikTok is at an early stage and can only be launched in a few countries. Once TikTok is ready, the big cake of globalization is already waiting.

Enjoy the benefits of globalization, InstThe launch of agram on the TikTok platform is just the beginning.