Research and analytics company Insider Intelligence has forecast that global ad revenues for online video platform TikTok will triple this year. The company predicts TikTok will earn $11.6B in ad revenues in 2022 – greater than the ad revenues of social media apps Twitter and Snapchat combined ($5.6B and $4.9B respectively).
TikTok’s global ad business already grew by 175% in 2021, according to Insider Intelligence, reaching $3.8B. The company has also forecast that TikTok’s ad revenues will achieve near parity with YouTube by 2024, soaring to $23.58B. The two major online video platforms will, at that point, control a 3.1 per cent share each of the global digital ad market.
According to Insider Intelligence, 51.2% of TikTok’s revenues will come from the U.S. this year, bringing in $6B (with 184.4% year-on-year growth.) The platform will command 2.4% of the U.S. digital ad market. In the UK, TikTok will earn $1.04B in ad revenues this year and control 2.9% of the UK digital ad market. Insider Intelligence predicts that by 2024, ad revenues from the U.S. and UK will reach $11B and $1.98B respectively.
Principal Analyst at Insider Intelligence Debra Aho Williamson, said: “[TikTok] has moved well beyond its roots as a lip-syncing and dancing app; it creates trends and fosters deep connections with creators that keep users engaged, video after video. Advertisers want to reach a passionate, dedicated audience, and TikTok can deliver that.
Another factor that will drive growth in ad spending is TikTok’s unique take on social commerce. It pairs marketers with creators to help content go viral, and that can drive enormous demand for products that advertisers want to promote.”
