TikTok Was The Fastest Growing Social Media Platform By Ad Revenue in 2022

Summary

TikTok experienced rapid growth in ad revenue in 2022, becoming the fastest-growing social media platform, but its future in the US remains uncertain due to potential bans.

Abstract

TikTok, despite competition from established companies like Google and Facebook, achieved remarkable growth in ad revenue in 2022, increasing by 26 percent year-over-year. This growth is particularly notable in the US, where it became the most downloaded app in 2021. However, its continued presence in the US is threatened by potential government bans, with both Republican Party officials and existing social networks lobbying against the app. The current US administration has endorsed a ban, and TikTok CEO Shou Zi Chew is set to testify before congress to argue against these measures.

Opinions

The author suggests that the explosive growth of TikTok in the US is due to users becoming disillusioned with existing apps that have become too political and a source of heated debates.
The lockdowns and pandemic contributed to TikTok's exponential growth.
Based on projections, TikTok is expected to overtake Meta (Facebook) and YouTube in market share for ad revenue by 2027, reaching 37 percent of the market.
The author believes that TikTok's potential ban is not surprising, given the political pressure and lobbying from existing social networks.
The author notes that while the sale of TikTok to Oracle never materialized, the current US administration has endorsed the ban, despite previously expressing uncertainty about TikTok's future.
The author points out that TikTok CEO Shou Zi Chew will argue in favor of the app, citing its 150 million active users in the US.
The author suggests that the debate over a potential TikTok ban in the US will continue, with no clear resolution in sight.

TikTok Was The Fastest Growing Social Media Platform By Ad Revenue in 2022

TikTok Short Film Award by Cyril Bagnost via Wikimedia Commons

In spite of a mighty presence of companies like Google, Amazon, Twitter, Facebook, Instagram and others TikTok was a fast growing ad machine. According to Betting Sites, TikTok was the fastest growing social media company by ad revenue in 2022 (26 percent growth year-over-year (YoY).

Side-by-side comparison of social media networks ad revenues.

What is astonishing is how in such a short amount of time TikTok managed to have such explosive growth in the United States (U.S). Aside from all the influence and popularity of the app, it is possible the U.S government will ban it. I will get to this later in this article and stick around for that.

Another incredible feat for the Chinese-based app is it was the most downloaded app in 2021 in the world. So many users from so many different countries flooded to the app as the next best place to hang out.

One very reasonable and verifiable explanation as to why it became the go to app to check out was because existing apps became too political. In addition, they became grounds for heated debates about all things connected to politics. I have to say I left Twitter and Facebook because it was too much to deal with angry people. By the way, don’t forget that the lockdowns and the pandemic contributed to an exponential growth of TikTok.

Based on current projections provided by Betting Sites, TikTok market share for ad revenue would overtake Meta (aka Facebook) and YouTube by the year 2027 (37 percent of the market for ad revenue).

Projected market ad revenue for TikTok by 2027.

By the year 2027, TikTok would double in digital video ad revenue from 7 percent to 14 percent. Meanwhile you would see a drop in revenue for Meta and YouTube, which is not surprising. More about the potential ban in the works and gaining momentum.

Why A Ban of TikTok Makes Sense

Why a TikTok ban is in the works is not at all surprising. Not only has the Republican Party and specific party officials gone after the app, but existing social networks have been lobbying very hard for TikTok to go away. Do yo know who they are? They have been mentioned in this article already.

First of all, the petition to ban TikTok happened during the Trump administration. Furthermore, the sale of TikTok to Oracle never materialized. However, I had reported that Biden was unsure about what to do with TikTok. What is bizarre is that now he has decided he is in favor of banning TikTok.

Nevertheless, the current U.S administration has endorsed the ban of TikTok. Current CEO of TikTok, Shou Zi Chew is set to testify before congress this week. He will make a case why TikTok is in compliance and that the app has 150 million active users.

What happens next nobody knows, but it seems that the conversation of a ban will continue to be a debate in the U.S.