TikTok is still relatively unproven as a business, and remains challenged by a major geopolitical hurdle. But that hasn’t stopped advertisers from investing heavily in the social platform. Its future has that much potential.
Marketers say TikTok—which still faces a potential ban in the US—presents a massive opportunity for businesses to build awareness for their brands as the app begins introducing a second monetization model: e-commerce. Today, TikTok makes money exclusively through advertising on the platform. But by the first half of 2021, it’s expected to integrate the buying and selling of consumer products into the app experience itself, harnessing the purchasing power of its growing Millennial and Gen Z audience.
“It occupies a space in media that’s unlike any other platform,” said Aaron Goldman, the CMO of Mediaocean, a popular ad sales platform. “There’s opportunity for TikTok to get to Snapchat-like revenues just on the back of a standard advertising offering. But it has a chance to leapfrog Snap and other social networks if it can get past advertising and get to integrated commerce.”