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After Trump leaves, TikTok gets the opportunity to multiply advertising revenues in the United States
The initiative to spin off TikTok’s U.S. business was considered purely the brainchild of Donald Trump, who was persuading Chinese developer ByteDance to sell assets to the Oracle and Walmart alliance. Under the new president of the United States, no one is raising the issue bluntly, so local advertisers are ready to actively use the TikTok platform.
Image source: Reuters
This is reported by Reuters, citing comments from various US advertising agencies. Interest in advertising on this site among American advertisers, according to the source, literally skyrocketed. In the next six months, the pockets of successful TikTok users will be flooded with funds from those companies that have so far refrained from advertising due to political uncertainty with the platform’s business in the United States.
TikTok’s advertising revenues in the US have so far been quite modest compared to other platforms, so the «low base effect» is quite reasonable to count on their sixfold increase by the end of 2021. McDonalds and Bose have already seized the opportunity to attract the TikTok audience in the United States to their services and products, the latter even noted that users of this service spend more time watching commercials. Nonprofits use TikTok to collect donations to continue their business.
TikTok developers are exploring the possibility of distributing direct links to advertised services and products in order to get users a commission for their placement. Even financial services companies are interested in advertising on TikTok, after the GameStop story, which showed interest in investing among a young audience. According to many ad market players, TikTok will continue to attract customers from new business areas.