TikTok is a short-form video hosting service owned by ByteDance, a Beijing-based internet technology company founded in 2012. It hosts user-made music videos, comedy sketches, dance videos, and other short video clips. TikTok was launched in September 2016 in mainland China as Douyin (Chinese: 抖音). The app was launched internationally the following year under the name TikTok.
TikTok has grown rapidly since its launch, becoming one of the world’s most popular social media platforms. As of 2022, TikTok has over 1 billion monthly active users globally. It has been downloaded over 3.3 billion times on the App Store and Google Play. In the US, TikTok has around 100 million monthly active users.
A key part of TikTok’s marketing strategy has been viral growth fueled by its addictive short video format that keeps users coming back. The app’s algorithm is very effective at showing users content that keeps them engaged. TikTok has also leveraged influencer marketing and strategic partnerships to drive growth.
User Acquisition
TikTok has utilized viral growth and influencer marketing as key strategies for user acquisition. The app is designed to quickly spread content through features like duets, stitching, and sharing which tap into the viral nature of social media (source). TikTok incentivizes users to create and engage with content, resulting in highly sharable videos that spread rapidly. According to one analysis, a single user on average spreads content to 1.5 other people, fueling exponential growth (source).
Influencer marketing has also been key. TikTok identifies and works with popular creators to produce viral content. The app suggests new users follow certain influencer accounts to quickly build their feeds. Influencers promote trending sounds, dances, and challenges which are amplified through TikTok’s algorithms. This allows unknown users to also gain large followings by participating in viral trends (source). TikTok’s focus on viral growth and influencer marketing has been central to its rapid user acquisition success.
User Engagement
TikTok employs various tactics to keep users highly engaged on the platform. One key strategy is the use of personalized recommendations based on user interests and interactions (Source). The “For You” feed shows users videos that align with the content they typically watch, like, share and comment on. This creates a customized, addictive experience.
TikTok also utilizes viral challenges to drive engagement. Popular challenges often involve dances, stunts or comedy bits for users to recreate and share. This sparks trends that spread across the platform and keeps users entertained as both participants and viewers (Source).
Other tactics include react videos, duets, filters and more. TikTok aims to make creation and sharing simple and fun. Features like stitching multiple clips together facilitates repurposing content in new ways. The app provides endless amusement for an online community obsessed with trends and entertainment.
Ad Solutions
TikTok offers several advertising options for brands looking to reach its large user base:
In-feed video ads – These short video ads appear in a user’s “For You” feed, seamlessly integrated with other organic TikTok videos. In-feed ads look and feel like native TikTok content while allowing brands to promote their products or services. According to Influencer Marketing Hub (source), in-feed video ads have an average engagement rate of 19%, much higher than other platforms.
Branded lenses – TikTok’s branded lenses allow brands to create sponsored AR effects and filters. When users engage with a branded lens, they become brand ambassadors by sharing organically created content. Branded lenses help brands achieve viral spread and higher ad recall. Based on data from Planly (source), the use of branded lenses results in a 3-10x higher engagement rate compared to standard video ads.
Hashtag challenges – Brands can launch hashtag challenges to encourage users to create branded content around a specific theme. According to BizTech College (source), hashtag challenges can generate billions of video views and massively boost brand awareness. Successful challenges rely on creating fun, engaging themes that inspire users to participate.
Partnerships
TikTok has developed partnerships with major brands and influencers to promote products and services on the platform. According to Nikki Bogopolskaya, Head of Industry at TikTok, her team manages brand partnerships across all financial categories (Nikki (Bogopolskaya) Scott – Head of Industry – TikTok). Brands partner with influencers to create sponsored content and hashtag challenges, leveraging influencers’ creativity and existing follower base. For example, Chipotle sponsored a #GuacDance challenge where users created videos dancing with chipotle ingredients.
TikTok also partners directly with brands through its TikTok for Business platform, providing self-serve and managed ad solutions. Media companies like ESPN, NBC, and BBC have entered into content partnerships, bringing sports highlights and other programming to TikTok. The platform collaborated with the NBA and NFL for hashtag challenges around major sporting events. Through its diversified partnership strategy, TikTok provides brands varied ways to reach its engaged user base.
Localization
TikTok has adopted a smart localization strategy to adapt its content for different markets across the globe. According to Jeff Bullas, TikTok localizes its app and content experience for each market by translating text and adjusting content recommendations based on local trends and interests. For example, TikTok launched a Middle East version of the app with content moderation adherence to local cultural norms. TikTok also employs native language moderators and evaluators to ensure localized content aligns with local sensitivities.
As explained in Alconost’s analysis, TikTok goes beyond simple translation to truly adapt content across cultures. This includes using local slang, adjusting humor for what resonates locally, and tailoring content categories, hashtags, and recommendations to connect with unique local audiences. Through in-depth localization, TikTok provides customized, relevant experiences that fuel its viral growth worldwide.
Influencer Marketing
TikTok utilizes influencer marketing with their Creator Marketplace, allowing brands to connect directly with popular creators on the platform to promote products and campaigns. The platform provides data and insights to match brands with suitable influencers that engage their target audience (Charli D’Amelio and Dunkin Donuts: A TikTok Influencer Marketing Case Study, https://influencehunter.com/2022/06/15/charli-damelio-and-dunkin-donuts-a-tiktok-influencer-marketing-case-study/).
Influencers partner with brands to create sponsored content, engage with branded hashtags and challenges, and promote products to their followers. For example, Charli D’Amelio partnered with Dunkin’ Donuts to create a new menu drink called “The Charli” and promote it in custom TikTok videos and posts. This campaign resulted in over 2 billion TikTok views and drove significant traffic and sales growth for Dunkin’ (A TikTok Influencer Marketing Case Study: Song Promotion, https://theinfluencermarketingfactory.com/a-tiktok-influencer-marketing-case-study-song-promotion/).
TikTok provides performance tracking and campaign management tools to optimize influencer partnerships. Brands can measure content views, engagements, website traffic, sales, and ROI from influencer campaigns on TikTok’s platform.
User Data
TikTok collects a significant amount of user data in order to power its recommendation algorithm and target ads. This includes information like location, watch history, interests, and device data (The TikTok Privacy Paradox). TikTok likely has one of the most extensive user data sets due to its massive user base and engagement. Concerns have been raised about TikTok’s lack of transparency around how user data is collected and shared (95 TikTok Statistics).
TikTok uses user data like interests, demographics, and behavior to target ads. Brands can target ads using TikTok’s insight tools to see audience interests and optimize targeting (TikTok). User data powers TikTok’s recommendation algorithm, allowing it to serve ultra-targeted video content that users engage with. The extensive data collection likely fuels TikTok’s massive user growth and retention.
Competitive Advantage
TikTok’s main competitive advantage lies in its proprietary algorithm that quickly learns users’ preferences and serves them highly personalized content through its “For You” page. The algorithm is exceptionally good at understanding users’ interests based on their interactions and recommending relevant short videos that keep them engaged. As Entrepreneur notes, “An endless number of prompts and challenges make it easy to participate because you don’t have to think of content ideas.”
Unlike platforms like Instagram that focus on following other users, TikTok relies heavily on its algorithm to push content regardless of follows. The machine learning algorithm tracks each user’s interests, likes, shares, comments, etc. to determine what content to serve next to maximize addictiveness. As users spend more time on the app, the algorithm gets even better at predicting what they want to see. This creates a positive feedback loop that gives TikTok an advantage in hyper-personalized curation at scale.
Additionally, TikTok’s focus on short-form entertaining videos sets it apart from competitors. As Matt Smith writes on LinkedIn, “Most platforms force their users to pretend to be living perfect lives. TikTok embraces and amplifies the imperfections of everyday life.” The app incentivizes participation by making it easy and fun to create short videos using its array of filters and effects. This focus on bite-sized entertainment in an ego-free environment gives TikTok a unique competitive edge.
Future Outlook
TikTok is set to expand and evolve in new ways going forward. The platform is poised for growth as it explores emerging ad formats like shoppable video ads and livestream shopping. These new formats will attract more brands and offer additional monetization opportunities. Expansion into new international markets is another priority, especially targeting developing countries where smartphone adoption is rapidly rising. Diversifying beyond TikTok’s core Gen Z demographic will also be a focus. Initiatives to draw in older users include optimizing content recommendations based on age, emphasizing topics like cooking and fitness, and pursuing partnerships with media brands that appeal to broader audiences.
TikTok’s parent company ByteDance aims to become the next “global tech giant” and plans to heavily invest in TikTok to support that goal. The app’s monthly active users recently surpassed 1 billion and continue to climb. While regulatory hurdles remain in some countries, TikTok is projected to keep growing and cementing itself as a top social media platform worldwide. Its success attracts competition, but TikTok’s algorithms and AI technology give it an edge in video recommendations and personalized experiences. The platform is well-positioned to retain users while expanding its capabilities and revenue streams.
