TikTok can’t be ignored anymore – TikTok deep dive

We all have to think about TikTok, now.

  • That’s despite the concerns around TikTok privacy and data usage: class-action lawsuits and National Security reviews haven’t impacted users jumping on in droves.
  • What could once be dismissed as for teenagers, or those not aware of the possible data issues, has become part of the wider social world.
  • Some are going further: “In less than four years, TikTok has become the most culturally significant product in the world,” writes Turner Novak, who posted a superb deep dive into TikTok and ByteDance, the parent company of TikTok which recently hired a Disney exec (Quartz).

Novak’s deep dive, The Rise of TikTok and Understanding Its Parent Company, ByteDance on his Substack is basically required reading. I’ve pulled out just a few notes and highlights below, but the whole thing will set you straight.

  • “TikTok has become the best way to create and consume short videos on mobile. It rode the wave of AirPods and audio memes to over 1 billion DAU’s (Daily Active Users), and is likely worth ~$200 billion. This would make it not only the world’s most valuable “startup” but one of the world’s most valuable companies, period.”
  • The money involved is enormous: TikTok reportedly “spent $3M/day on user acquisition and PR throughout 2018 and 2019”, and while initial churn rates were enormous, that flattened into between 28-40% retention.
  • It’s eating into Instagram, which hasn’t shown growth in its reach in the past year and is seeing declining downloads. (Novak says Facebook investors will catch on eventually.)

  • But what’s next is just as interesting. TikTok is already heading into eCommerce integration in videos and will open up its own self-serve ad manager.
  • Novak believes the next step for ByteDance is leveraging TikTok to launch new products, and that’s happening already.
  • Whereas some companies just build their own platform, ByteDance is hiring too fast, and we’re already seeing longer-form video products emerge in China, and more.
  • Just as TikTok memes drive the music charts, there’s an exploration of ByteDance’s own music streaming app Resso, launched in India, Indonesia, and Brazil already, which “marries the UI’s of TikTok and Spotify with the spirit of YouTube”.
  • Add in gaming (ByteDance owns multiple gaming companies), education, consumer finance, messaging, enterprise software, cloud hosting…
  • Conclusion? “In less than four years, TikTok became the most culturally significant product in the world. It rode the tailwinds of AirPods and memes to reach over 1 billion DAU’s and is now the best way to create and consume video content on mobile. Everyone should be watching to see what they do next,” writes Novak.
  • Do check out that deep dive and the wider considerations for pop culture, media, advertising, social, and growth. And consider that Novak might be the most positive analyst in the game on TikTok… how will Facebook/Instagram, Snapchat, Twitter, and co., react?

WhatsApp tests multi-device access and improved new features search by date, overhaul storage functionality

  WhatsApp might soon let you search messages by date. The platform is also apparently including new tools to handle storage. All the new...

OnePlus 8 and OnePlus 8 Pro would get Android 11 beta 1128183

  While the OnePlus 8 and OnePlus 8 Pro can download the Android 11 beta now, owners of those devices may be much better off...

Android 11 is changing notifications in major way

The first Android 11 beta is here and Google called in some major changes to the way the Android 11 notifications drop-down shade works....

Leave a Reply