According to a research by WARC media, TikTok’s advertising revenue is about to reach $32.4 billion this year, which will mark its 24.5% YoY growth. The largest market for TikTok’s advertising revenue is the US, but the uncertainty about the future of TikTok in the region has contributed to the decline in the share of its ad revenue. In 2022, TikTok had 43.3% share in ad revenue in the US but now it is set to decline to 34.0% by 2026. If TikTok gets banned in the US, it will mean a loss of $11.8 billion in ad spend.
The research by WARC media also talked about how much time is being spent by users on TikTok. It showed that users are spending 35 hours per month on TikTok, and it is way more than usage on Meta's Instagram. TikTok ads are also generated 4.2x return on ad spend when Amazon sales impact is included. TikTok ban in the US can make the app replaced by YouTube, Instagram, and Snapchat in the digital ad market. Nearly $12 billion is going to be at risk with the TikTok ban and many brands are uncertain about their future on the platform.
TikTok is one of the biggest social media advertising platforms, and many people use it to discover and purchase products. WARC also says that 81% of agencies are planning to increase their investments in TikTok ads, and TikTok is helping many brands with Amazon sales as well. Instagram and YouTube will win big time if TikTok gets banned in the US, so advertisers are walking a tightrope, intrigued yet wary, as regulatory gray areas and brand safety fears loom large.
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The research by WARC media also talked about how much time is being spent by users on TikTok. It showed that users are spending 35 hours per month on TikTok, and it is way more than usage on Meta's Instagram. TikTok ads are also generated 4.2x return on ad spend when Amazon sales impact is included. TikTok ban in the US can make the app replaced by YouTube, Instagram, and Snapchat in the digital ad market. Nearly $12 billion is going to be at risk with the TikTok ban and many brands are uncertain about their future on the platform.
TikTok is one of the biggest social media advertising platforms, and many people use it to discover and purchase products. WARC also says that 81% of agencies are planning to increase their investments in TikTok ads, and TikTok is helping many brands with Amazon sales as well. Instagram and YouTube will win big time if TikTok gets banned in the US, so advertisers are walking a tightrope, intrigued yet wary, as regulatory gray areas and brand safety fears loom large.
Read next:
• AI Apps Are Exploding: Video, Photo Editing, and Assistants Lead the Way to Record Growth
• Ever Felt Anxious After Stopping Instagram? Durham Study Unveils the Science Behind It
