While Twitter and Meta are mass layoffs, TikTok launches a plan to double its workforce, pushing to expand ad share
It is reported that TikTok, a video sharing SNS, plans to double its workforce to about 2,000, as major companies such as
As Meta and Twitter Lay Off Thousands in Bay Area, TikTok Plans to Double Staff — The Information
https://www.theinformation.com/articles/as-meta-and-twitter-lay-off-thousands-in-bay-area-tiktok-plans-to-double-staff
TikTok's swooping in to grab laid-off talent - The Hustle
https://thehustle.co/11172022-tiktok-hiring/
As Meta, Twitter & Snap Swoon, TikTok Eyes Opportunity: 'Marketers Have To Move Budgets' |
https://www.thedrum.com/news/2022/11/17/meta-twitter-snap-swoon-tiktok-eyes-opportunity-its-the-platform-the-people
Overseas media The Information reported that TikTok plans to strengthen recruitment and double the number of employees to about 2,000, while major technology companies such as Meta, Twitter, and Amazon are forced to lay off a large number of employees. . The increased headcount could drive investment in product development, making TikTok an increasingly attractive platform for advertisers.
TikTok's advertising business is doing very well, and annual advertising revenue is expected to exceed 1 trillion yen in 2022. This amount greatly exceeds competitors such as Twitter and Snapchat, and there is an estimate that advertising revenue in 2024 will be 70 times higher than in 2019.
TikTok's annual advertising revenue is expected to reach more than 1 trillion yen, almost double that of Twitter and exceed Twitter + Snapchat - GIGAZINE
In particular, Twitter, a competing SNS, has been away from advertisers following the appointment of Mr. Elon Musk, and Meta has been hit hard by the advertising business due to changes in Apple's privacy policy , which will be a tailwind for TikTok. are being watched.
“Reducing ad spend on Snapchat and Meta is an opportunity for TikTok, because even if marketers cut back on their spending, they’re going to have to pay more for advertising,” said Shiv Gupta, managing partner at U of Digital, a digital marketing analytics firm. Because we have to move the budget somewhere else,' he said. It argues that if ad spending on competitors is reduced, ad spending on TikTok may increase by that amount.
In addition, TikTok is a brand-powered platform with a huge user base, and the environment in which ``general people send content'' also strengthens its position in the competition for advertising expenses. Kaeya Majmundar, CEO of Swaypay , which develops a marketing service that provides cash back to users who advertise their purchases on TikTok, said, ``TikTok is a platform for ordinary people, and that is why it is so powerful.'' pointed out that 'stories' sent by ordinary people are preferred over 'advertisements' made by professionals.
In addition, TikTok is in its early stages as an advertising platform, and compared to other platforms, it can only measure media roughly. thing. Shortcomings in media measurement are also a source of frustration for advertisers, and although many companies are unconvinced by TikTok as an advertising platform, TikTok continues to appeal to advertisers by investing heavily in innovation in its advertising products. I'm here.
On the other hand, TikTok is under strict scrutiny from regulatory bodies regarding the handling of user data. In 2020, former President Donald Trump demanded that TikTok 'sell it to an American company by September 15, 2020,' and even after this was canceled by future President Joe Biden, the government agency continues to monitor TikTok.
Under such circumstances, in November 2022, the privacy policy clearly stated that Chinese employees could access the data of European TikTok users.
TikTok acknowledges that 'Chinese staff can view user data', with privacy policy update in Europe-GIGAZINE
US Federal Bureau of Investigation (FBI) Director Christopher Wray said on November 15 that TikTok's US operations raise security concerns. ``There is a possibility that the Chinese government will control the collection of millions of user data and the recommendation system that can be used to manipulate influence,'' Lei said. was shown.
US FBI director says TikTok poses national security concerns | World News,The Indian Express
https://indianexpress.com/article/world/us-fbi-director-says-tiktok-poses-national-security-concerns-8270913/
In addition to handling user data, there are concerns about the psychological impact on TikTok users, who are often young. In March 2022, several states in the United States, including California, Florida, and New Jersey, began investigating the psychological impact of TikTok on children . The Chinese government limits the use of the Chinese version of TikTok 'Douyin' provided in the mainland to 40 minutes a day, but the average TikTok users around the world are 95 minutes a day. are also using the app.
Linda Xiao, North American director of advertising agency Momentum Worldwide, points out that TikTok's success lies in its AI-powered recommendation system. It claims that users are susceptible to extreme content because they are automatically recommended highly optimized content.
Advertisers value user privacy and platform integrity, and TikTok recognizes that, and has stepped up its brand safety efforts in recent years. In November, the company announced an expanded partnership with digital media analytics platform DoubleVerify to provide advertisers with new brand safety and suitability measurement tools.
Overseas media The Hustle said, ``It is clear that TikTok can bring great benefits to advertisers, but it is not without risks. Despite the challenges of establishing a platform that is safe and trustworthy from the perspective of users from regulators, the app is in a strong position to differentiate itself from its competitors,' he said, adding that TikTok will continue to expand its ad share. I showed the view that I'm going to go.
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