Accused by the Trump administration of being a front for the Chinese government, TikTok’s advertising business looked bleak in July last year.
The big brands refused to spend even as TikTok executives have offered a refund to advertisers in the event that the hot social media platform is banned from operating in the United States.
But after it became clear that Joe Biden won the US presidential election in November, everything changed.
“Interest in TikTok has erupted,” said Erika Patrick, vice president and director of social media at Mediahub Worldwide, who has worked with brands, including Netflix and Pulling. She said she expects customer spending to increase significantly over the next six months.
While Biden the administration suspends a government case filed by Trump officials, corporate sponsors returned to the popular video sharing app, booked ad campaigns and experimented with new ways to reach consumers, three Reuters agents said.
The excitement surrounding national security and TikTok during the previous administration appeared to have been “rather a cascade” and was not a major concern for advertisers, Patrick said.
Trump’s defeat in the election was a turning point for many advertisers who had previously been “on the fence” for TikTok, according to a media buyer.
With the advent of business, the platform also turned to major brands individually to address ongoing concerns such as placing their ads, the buyer said.
Although TikTok’s advertising business in the United States is still small compared to larger social platforms, TikTok said it has tracked a 500% increase in advertisers campaigning in the United States in 2020. He says he is constantly in talks with advertisers about brand safety.
Since the end of last year, TikTok has registered McDonald’s, Kate Spade, Chobani and Bose, as well as non-profit organizations, including St. John’s Children’s Research Hospital. Jude, said a spokesman for TikTok.
Bose has found that ads on TikTok are viewed longer than on other platforms, said Christina Kelleher, global social media manager for Bose.
St. Jude has raised about $ 50,000 (approximately Rs. 36.3 lacquer) since September through a donation button to TikTok, according to ALSAC, the St. Jude Fundraising and Awareness Organization.
“TikTok is one of our fastest growing platforms,” said Rick Shadyak, CEO of ALSAC, adding that the organization’s first advertising campaign in December with actress Ashley Tisdale had a “huge commitment.”
As the app seeks to make more money and take advantage of its large Gen Z audience, TikTok’s revenue ambitions have grown to include the sale of the highest-dollar advertising packages centered around holidays or big events.
To celebrate Black History Month, TikTok will host a virtual event with 500 Black creators on Thursday and invite brands to sponsor the event for $ 750,000 (approximately Rs. 5.5 nail polish), according to a TikTok slide deck received by Reuters .
The company also asked brands for $ 1.5 million (approximately Rs. 11 crore) to sponsor a live final event on Feb. 26, including performances by artists and special guest appearances, the slide deck showed.
E-commerce is a growing priority, a TikTok statement said, as the company seeks to take over Facebook Instagram, which allows users to buy products directly through the app.
TikTok said it was exploring consumers’ ability to share associate product links in the app, which could allow influential people and TikTok to earn a commission on sales.
Influencer marketing, now a major form of advertising at TikTok, is thriving as more brands rush to pay top stars known for their dance routines or comedy sketches to promote products to their millions of fans.
The Influencer Marketing Factory, which has worked with brands including Dunkin and Amazon to negotiate meaningful deals with stars on social media, there has been a fivefold increase in applications from brands that want to work with influential people on TikTok since November, said Alessandro Bollardi, the agency’s executive director.
Even stable companies like financial services companies are wondering how they can get into the app afterwards GameStop The trade craze has shown that younger consumers have more diverse interests than some advertisers expected, said Joe Gagliese, chief executive of marketing influence agency Viral Nation.
“TikTok has changed dramatically, you see finance and sports there,” Gaglise said. “That’s what drives other brands to come in and play.”
© Thomson Reuters 2021
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