The Trump administration accused it of being the front of the Chinese government. In July last year, TikTok’s advertising business looked bleak.
Even if TikTok executives provide refunds to advertisers, but to prohibit popular social media platforms from operating in the United States, large brands will not spend money.
But after Joe Biden won the US presidential election in November, everything changed.
Erica Patrick, vice president and social media director of Mediahub Worldwide, said: “Interest in TikTok has skyrocketed, and the company has partnered with brands such as Netflix and Twitch. She said she expects customer spending in the next six months. Will greatly increase.
Three ad agency executives told Reuters that when the Biden administration suspended government lawsuits filed by Trump officials, company sponsors had returned to popular short video sharing apps, booked ad campaigns and tried new ways to attract consumer.
Patrick said that during the last term in power, the dispute over national security and TikTok seems to have been “stunning”, and for advertisers, this is not a serious problem.
A media buyer said that Trump’s defeat in the general election was a turning point for many advertisers who had previously held a “wait and see attitude” towards TikTok.
Buyers said that as the business picked up, the platform also made individual contacts with major brands to address lingering concerns, such as the location of advertisements.
Although it is estimated that TikTok’s U.S. advertising business is still small compared to large social platforms, TikTok said it tracked a 500% increase in advertisers carrying out advertising campaigns in the United States in 2020. It stated that there is an ongoing dialogue with advertisers on brand safety. .
Since the end of last year, TikTok has signed contracts with McDonald’s, Kate Spade, Chobani and Bose, as well as non-profit organizations including the St. Jude Children’s Research Hospital.
Christina Kelleher, Bose’s global social media manager, said that Bose found that it took longer to advertise on TikTok than on other platforms.
According to St. Jude’s fund-raising and advocacy organization ALSAC, since September, St. Jude has raised approximately US$50,000 (about 3.63 million rupees) through the donation button on TikTok.
ALSAC CEO Rick Shadyac said: “TikTok is one of our fastest-growing platforms, adding that the organization’s first ad campaign with actress Ashley Tisdale in December had “huge engagement”.
As the app seeks to make more money and capitalize on its large Gen Z audience, TikTok’s revenue ambitions have grown, and now include the sale of highest-priced advertising packages centered on holidays or major events.
According to TikTok slides obtained by Reuters, to celebrate “Black History Month”, TikTok will hold a virtual event with 500 black creators on Thursday and invite brands to sponsor the event at a cost of 750,000 US dollars (approximately 550,000 rupees) ).
The slide also shows that the company also requires brands to pay 1.5 million US dollars (approximately 1.1 billion rupees) to sponsor the live finale performance on February 26, which includes artist performances and special guest attendance.
TikTok said in a statement that e-commerce is becoming more and more important because the company aims to adopt Facebook’s Instagram, which allows users to purchase products directly through the app.
TikTok said that it is exploring allowing users to share membership product links on the app, which may allow Internet celebrities and TikTok to earn commissions from sales.
Internet celebrity marketing has become the main form of advertising on TikTok. As more and more brands rush to pay top stars who are known for their dance routines or comedy skits, they promote products to millions of fans and influence marketing. Is booming.
The company’s CEO Alessandro Bogliari said that since November, the number of requests from brands that hope to cooperate with TikTok influencers has increased since November, which has cooperated with brands including Dunkin and Amazon to arrange content transactions with social media stars. Five times. The agency.
Joe Gagliese, CEO of Viral Nation, an influence marketing agency, said that after the GameStop transaction spree showed that young consumers were more interested than some advertisers expected, even for bland companies such as financial services companies. All are asking how to enter the application.
Gagliese said: “TikTok has completely changed. You are seeing finance and sports there.” “This is what drives other brands to join the market.”
Thomson Reuters 2021 ©
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