Is TikTok becoming a super app? Why companies should act now

Anja Meusburger

Director Digital Marketing

TikTok Social Commerce
On the one hand, the app manages to claim the increasingly valuable time of users with entertainment, music, gaming, education and messaging. And on the other hand, any purchases can be mapped within this app. All this makes TikTok a super app.
👪 User and usage figures
Facts and figures on the development of TikTok

Not only the DFB can now be found on TikTok, but also many other companies have ventured the step onto TikTok.

No wonder, because in terms of user numbers and usage, TikTok has already been on the rise for two years with over 1 billion monthly active users. According to a study from the U.S., TikTok users spend almost 30 hours per month, or a whole hour per day, in the app. Neither Instagram, with its combination of reels, stories, and feeds, nor Facebook, Snapchat, and others can boast such a long dwell time. And users also spend "only" 20 hours per month on YouTube on average.

According to its own statements, TikTok's sales volume will triple again this year, i.e. to $12 billion. So it remains exciting whether TikTok will manage to catch up with YouTube's sales, which are $29 billion, in 2 years.

The Chinese parent company of TikTok - ByteDance, already makes $50 billion in sales per year, primarily through the Chinese TikTok variant Douyin.

🎯 TikTok target group
Why is the app so well received, especially in the GenZ?

Why is the app so popular, especially among GenZ?

What's unique about TikTok is that the "For You" page shows content not only from profiles that users follow, but also from profiles they don't follow.

Almost 70% of active users are between the ages of 16 and 24. So why is it so popular, especially with GenZ? Not only has the app built up its user base over the years, but it has also perfected its usability and, above all, its algorithm to such an extent that it is able to play exactly what users are fascinated by and keep them in the app, or even get them addicted. And only TikTok can do this at the moment. Even if Instagram has copied the format itself and the thousands of effects perfectly with its reels, the algorithm behind it doesn't work nearly as well.

So while Meta stagnates, TikTok has managed to capture GenZ and Gen Alpha in particular, taking valuable advertising budgets away from Meta's competitors. And that is not all. We see even more potential in the future. As ByteDance, TikTok's parent company, is already demonstrating in China, social commerce can become commonplace in this generation as well. So it's only a matter of time before you can do everything with TikTok.

💡 The importance of TikTok for businesses
Our experience

TikTok's development speaks for itself. That's why we urge all businesses, regardless of industry, to make the TikTok app a high priority and part of their marketing mix. Currently, 95% of businesses don't have it on their radar. But as we have seen in the past, developments in the digital world are much faster than in the analogue world.

We have done initial testing with TikTok for our clients and our experience has been very positive. Within two weeks, 5000 views, 300 followers and >1000 interactions on a video can be generated purely organically. TikTok also performs well with paid advertising. The CPM is currently only 0.70 cents. On Instagram, we paid a CPM of €4.50 for the same ads. So there is a very large group of users on TikTok who find information from politics and business, as well as public issues such as climate protection, super exciting and like, share and comment on this content.

What you need to be aware of, however, is that the principle always applies: Don't make ads. Make TikToks! Even complex topics and issues can work really well if they are properly prepared and explained in a simple and entertaining way.

An advert should also only run for one week. The demand for variety on TikTok is extremely high. The exception is A/B testing, where ads should run for at least two weeks to generate valid learning.

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