TikTok Expands Commercial Monetization Channels, Reaches External Cooperation And Launches New Features

The TikTok short video application continues to be popular in overseas markets. Data shows that TikTok currently has 732 million global monthly active users, and the number of monthly active users in the U.S. market exceeds 100 million. Data analysis company App Annie has previously predicted that TikTok’s monthly average in 2021 The number of active users may reach 1.2 billion.

Therefore, as the scale of users expands, TikTok has also attracted more and more advertisers. In order to maximize the monetization capabilities of advertising services, TikTok is seeking to add a series of new ones while continuing to explore its e-commerce potential. In-app shopping tools.

Introducing in-app shopping functionality to improve advertising effectiveness

Among the newly launched features of TikTok, the first new tool option is "Collection Ads", which is similar to the product list in YouTube videos. It can help brands combine their product catalog lists and brand videos to guide users from Find related products in its video clips.

Secondly, TikTok will also add “dynamic product advertising”, which is personalized product recommendations based on users’ consumption activities in advertisers’ apps and websites.

In addition, TikTok will also launch promotional and display “Tiles”. The former can help advertisers add customizable sales and promotion reminders in TikTok video ads, while the latter works with content creators to display them under the creator’s product promotion videos. Add thumbnail purchase links for related products.

The second Showcase Tiles is actually similar to the in-app purchase function of domestic Douyin↓

Reach external cooperation and establish a "moat" for traffic monetization

It is worth mentioning that most of TikTok’s audience is under 24 years old, accounting for 59%, of which 13% of users are between 13 and 17 years old, which means that TikTok will have the potential to Continue to expand and grow as these users age.

However, young people pursue freshness more and are less loyal to brands or platforms. As top creators move on different video platforms, TikTok will easily lose its existing customer base. This is what TikTok is currently facing. one of the biggest risks.

Therefore, TikTok needs to establish its own business model as soon as possible and improve its monetization capabilities, so as to retain content creators through generous rewards and stabilize its user base.

To this end, in addition to launching the above-mentioned marketing functions, TikTok is also actively seeking cooperation with external organizations. These external companies include the LiveRamp data connection platform and IPG Mediabrands media marketing enterprise.

According to the socialmediatoday website, TikTok’s cooperation with LiveRamp will help advertisers who have adopted LiveRamp services to provide consistent personalized ads for TikTok users; the collaboration with IPG Mediabrands will help IPG’s cooperative brands expand promotion opportunities on the TikTok platform and provide TikTok content creators provide more business opportunities and assist brands in advertising.

The "burn after reading" social software Snapchat also recently announced a similar cooperation with Gannett Media Company to attract brands that use Gannett's services to promote through the Snapchat platform.

It can be seen that TikTok’s various efforts to realize its commercialization are not only the needs of its own development, but also the general trend. Therefore, in the long run, TikTok's maintenance of the above-mentioned external partnerships will help its stable development, increase profits, and maintain its existing market position.