Insider Intelligence predicts that TikTok’s advertising revenue in the U.S. will reach $5.96 billion in 2022, a surge of 2.8 times that of 2021.
TikTok, a subsidiary of ByteDance, is one of the world’s most popular social media apps, with more than 1 billion active users worldwide.
Market research firm Insider Intelligence also previously said that TikTok’s revenue (globally) could grow twofold to more than $11 billion in 2022, surpassing the combined ad revenue of social media rivals Twitter and Snap.
Insider Intelligence estimates that Google and Meta are still the kings of the digital advertising market. By 2022, they could earn roughly half of global digital ad revenue, compared to TikTok’s 1.9 percent, but it’s growing too fast.
TikTok is attracting a lot of new customers thanks to the rise of the short-form video market.
Last year, Apple made it harder for advertisers to target consumers and measure the potential value of users, crippling the business of Meta and Google’s digital ad empire. As a result, the companies have shifted their ad spending to more areas, with a large portion redeployed to short-form video platforms like TikTok.
TikTok is expected to generate $12 billion in ad revenue this year, triple what it did last year, according to people familiar with the matter who spoke to the Wall Street Journal. ByteTok, which has other social media apps in China, is expected to grow its ad revenue by 50 percent this year, according to Insider Intelligence.
Marketing agency Byte Dept. told the Wall Street Journal that advertiser offers will naturally soar as demand increases. The branded hashtag challenge (a play) cost $500,000 at the end of last year, compared with $180,000 in 2019.
In this case, Google claims that 1.5 billion people a month are using its two-year-old cottage TikTok YouTube Shorts, while a study by Inmar Intelligence found that 70 percent of Web users regularly watch short videos.
Google says nearly 40 percent of the “Z generation” (people born between the mid-1990s and after 2000) prefer TikTok and Instagram to Google Search and Maps services when searching the Web.
Insider Intelligence even predicts that by 2024 Insider Intelligence even predicts that TikTok will surpass YouTube in advertising revenue by 2024.
Earlier this year, data showed that TikTok had overtaken Google to take the top spot as the world’s most popular domain, topping the Internet traffic list for 2021.
