Social media companies have become some of the biggest money earners in the world, and they usually try to make themselves valuable spaces for digital ads because of the fact that this is the sort of thing that could potentially end up allowing brands to get more eyes on their marketing campaigns. Facebook used to be the single biggest company in this space for a good long while, but in spite of the fact that this is the case TikTok has emerged as a major challenger for the top spot.
According to Emarketer's estimates, TikTok alone will earn over $11 billion in ad revenue in 2022 which represents a threefold increase from last year when the revenues were under $4 billion. With all of that having been said and now out of the way, it is important to note that this makes TikTok the destination for just under 2% of all digital marketing spending, or 1.9% to be precise.
Combining TikTok with its Chinese counterpart Douyin reveals that both these apps make up 5% of all digital marketing revenue in the industry. The majority of TikTok’s revenue comes from the US, and for Douyin and its parent company Bytedance the majority source of revenue is China. In spite of the fact that this is the case, both markets are reaching saturation for the apps, so chances are that their future growth will occur elsewhere thereby reducing their dependence on the two largest markets in the world thanks to their efforts at global expansion.
With their rate of growth hitting such heights, the combined marketing revenues for TikTok and Douyin are expected to cross $50 billion in just two years. They will represent a 6.7% share of the total market by 2024, which suggests that they might start to surpass the four companies that are ahead of them in terms of digital ad market share, namely Google, Meta, fellow Chinese company Alibaba as well as Amazon with all things having been considered and taken into account. It will be interesting to see their growth from here.
Read next: Insider Intelligence Reveals TikTok Generated More Ad Revenue Than Snapchat and Twitter Did Combined
According to Emarketer's estimates, TikTok alone will earn over $11 billion in ad revenue in 2022 which represents a threefold increase from last year when the revenues were under $4 billion. With all of that having been said and now out of the way, it is important to note that this makes TikTok the destination for just under 2% of all digital marketing spending, or 1.9% to be precise.
Combining TikTok with its Chinese counterpart Douyin reveals that both these apps make up 5% of all digital marketing revenue in the industry. The majority of TikTok’s revenue comes from the US, and for Douyin and its parent company Bytedance the majority source of revenue is China. In spite of the fact that this is the case, both markets are reaching saturation for the apps, so chances are that their future growth will occur elsewhere thereby reducing their dependence on the two largest markets in the world thanks to their efforts at global expansion.
With their rate of growth hitting such heights, the combined marketing revenues for TikTok and Douyin are expected to cross $50 billion in just two years. They will represent a 6.7% share of the total market by 2024, which suggests that they might start to surpass the four companies that are ahead of them in terms of digital ad market share, namely Google, Meta, fellow Chinese company Alibaba as well as Amazon with all things having been considered and taken into account. It will be interesting to see their growth from here.
Read next: Insider Intelligence Reveals TikTok Generated More Ad Revenue Than Snapchat and Twitter Did Combined
