TikTok launched in the US in 2018. At the time, no one could have imagined how successful the app would be. A year later, TikTok users in the US have spent $23.1 million in the app.
One hundred million users have downloaded the app all over the world, and the US market makes 24% of the revenues from the app, excluding third-parties.
Apptopia reports that downloads per month flat-lined after the initial hype about the app but started increasing in May 2019.
An estimated 50% of active users in the US are younger users below 20 years.
This makes the app popular for brand marketers who want to reach Gen Z.
Early adopters are brands like Chipotle and Guess, which launched a sponsored challenge on TikTok. There have been reports of Grubhub testing ads there during the early months of the year.
The CMO of e.l.f told eMarketer that ‘TikTok is introducing a new thing. Instagram is highly polished, but it’s still very curated. On TikTok, everyone wants to have fun and express themselves uniquely.’
ByteDance developers have made efforts to diversify their ad offerings by revealing that the company is working on an audience network.