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TikTok Continues to Gain Momentum, But Challenges Remain in Maximizing the App’s Growth

Regardless of varied content moderation and data privacy considerations, TikTok continues to realize momentum, with the latest data from app analytics agency SensorTower exhibiting that February 2020 was TikTok’s finest performing month, when it comes to complete app downloads, up to now.

, TikTok Continues to Gain Momentum, But Challenges Remain in Maximizing the App&#8217;s Growth, TornCRM

As per SensorTower:

“TikTok was downloaded by near 113 million App Retailer and Google Play customers worldwide in February, making it the app’s finest month ever for each installs and income in line with Sensor Tower Retailer Intelligence estimates.”

SensorTower additional notes that TikTok was probably the most downloaded non-game app worldwide final month, outperforming each WhatsApp and Fb. TikTok installs are up 96% year-over-year, with the COVID-19 outbreak seemingly fueling elevated adoption as individuals look to maintain themselves entertained whereas decreasing their time spent in public.

In complete, TikTok is now closing in on 2 billion lifetime installs, which is a big quantity, and may symbolize important alternative for model outreach and engagement. However there is a bit more to the upfront knowledge than it might appear – so earlier than you latch onto that 2 billion installs rely and pit TikTok in opposition to Fb, it is price breaking the figures down to grasp precisely what they symbolize.

First off, app installs are usually not energetic customers. Numerous stories on TikTok have seemingly equated the 2, however having 2 billion individuals obtain and set up your app will not be the equal of getting 2 billion customers energetic and engaged in your platform frequently. If TikTok had 2 billion energetic customers, it might be the second-biggest social platform on the earth, and closing fast on Facebook. Nevertheless it does not.   

The one official quantity we now have on TikTok’s world person base is that the app reached 500 million active users again in 2018, with the vast majority of them utilizing the Chinese language model of the app, referred to as ‘Douyin’. Since then, TikTok has not been forthcoming about its precise person rely.

Which is smart – a lot of the narrative round TikTok has been pumped up by obtain counts, which, as famous, are near reaching 2 billion. If TikTok have been to return out and say that it really has, say, 700 million month-to-month energetic customers, that will solely work to water down these obtain stats – however realistically, that is most likely nearer to the reality, whereas the viewers geographic cut up can be essential to grasp.

Breaking down the info, primarily based on the estimates and figures which have been made accessible, TikTok appears to have:

  • 400 million each day energetic customers in China
  • 81 million month-to-month energetic customers in India 
  • 26.5 million month-to-month energetic customers within the US
  • 23 million month-to-month energetic customers in Turkey

Different nations observe in decrease person counts from there, however as you possibly can see, the regional splits are related in TikTok’s total obtain and utilization counts. Sure, TikTok may be very widespread, however from an promoting and advertising perspective, it will not be comparable, at the very least in Western markets, to most different platforms when it comes to related viewers attain.

Certainly, in SensorTower’s prolonged breakdown of TikTok’s income info, it notes that:  

“TikTok additionally noticed its highest-ever month-to-month person spending in February, with the $50.4 million it generated equalling a 784.2% YoY enhance. This made it the third highest-grossing non-game app worldwide for the month behind Tinder and YouTube.”

Which is an incredible outcome, however once more, the regional cut up right here is critical. 

“China – the place TikTok is named Douyin – was accountable for almost all of this spending with practically $46 million, or 91% of all income for the month. The U.S. ranked No. 2 with $3 million, whereas Nice Britain got here in third, with $216,000.”

So, once more, TikTok is driving person curiosity and motion, however presumably not as a lot as you’ll anticipate in your native market, primarily based on the hype and top-line obtain counts.

That is to not say that TikTok is not rising its viewers base in all areas, and changing into a extra related consideration for entrepreneurs. However it’s price noting that, by comparability, the app will not be on the identical degree as even Snapchat (86m North American DAUs) when it comes to attain to the US market at this stage, placing it properly behind Twitter Fb, Instagram, and others.

That is the important thing query for TikTok. Sure, it has momentum and hype, and sure, the obtain figures are encouraging. However can TikTok make short-form video right into a related, viable and fascinating possibility? 

Vine, the primary short-form video app of this sort, finally buckled as a result of it wasn’t in a position to monetize successfully – with Vine’s most important content material providing being solely six-seconds in size, at most, that made it more and more troublesome for Vine to implement advertisements, as customers would both skip by them or ignore them in-stream. Finally, Vine’s incapacity to monetize successfully left it unable to create a viable income funnel for its prime creators, who subsequently migrated to YouTube, Instagram and Fb, the place they may publish longer-form content material, and make actual cash from advertisements.

Vine did attempt to counter this, including longer-form videos and pre-roll ads in its dying months, however with its prime creators transferring on, their followers shifted with them.

Whereas Twitter typically will get the blame for Vine’s failure, actually, it was the shortcoming for the corporate to successfully monetize that result in its demise – and Twitter could not do loads about that.  

Which then results in TikTok. 

Positive, TikTok has individuals’s consideration, it has customers tuning in, and it’s rising. However Vine had 200 million active users at peak, and it could not map out a revenue-generation framework. Will TikTok finally fare any higher?

As famous, it is nonetheless not producing important income within the US, and it is nonetheless spending big on promotion. At some stage, it might want to set up a way for its prime creators to monetize.

In China, Douyin has moved into eCommerce as a way so as to add in income choices, which is the way it’s seen such important income development in that area.

, TikTok Continues to Gain Momentum, But Challenges Remain in Maximizing the App&#8217;s Growth, TornCRM

Will the identical work within the US market? 

TikTok is already testing eCommerce tools and external links, in an effort to present extra income era choices for creators, whereas it is also bought its personal influencer marketing marketplace, which it not too long ago opened up to more businesses.  

, TikTok Continues to Gain Momentum, But Challenges Remain in Maximizing the App&#8217;s Growth, TornCRM

Mainly, TikTok is aware of that it wants to maneuver quick and construct an actual income era pipeline for these widespread customers – as a result of if it does not, they will take their abilities elsewhere, and their established audiences with them. Then TikTok will go the identical approach as Vine.

So whereas it looks like all of the momentum is with TikTok, and large numbers like ‘a billion downloads’ are often thrown round, there’s extra to it than the floor figures. And that is important to notice when it comes to model use, and the long run viability of the platform extra broadly.

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