TikTok’s has turned into a whole money printer with its revenue about to reach 12 billion dollars this year

TikTok has become one of the most used apps in the world ever since it blew up in the first year of Covid-2019. The app instantly became a hit with its short videos and made the ones creating them hit too. This app was developed by ByteDance.

When TikTok went viral and the people on it started making millions, brands realized that the era of Facebook is over and if they want to make money from the younger generation they need to step up their game and take it to TikTok.

Such is the story of one 22-year-old TikToker Alyssa McKay who used to work at a frozen yogurt store in Portland Oregon with minimum wage, now she earns more than 100,000 dollars a year just by making videos on the app. Brands pay her thousands of dollars to make a short video endorsing their product to her 9 million strong audience who consist of mainly young girls around the ages of 11-16.

TikTok rose to gain more than a billion global users who consume an un-ending amount of short clips that are loaded instantly by the algorithm which interestingly enough has been in development for about a decade ever since Zhang Yiming founded the company back in 2012. So it is safe to say that TikTok’s success isn’t beginner’s luck, but is the hard work of many people.

This algorithm has been developed to show just the right video as soon as you’re about to close the app to keep you hooked. Now this could present a problem for the tech giants of today Facebook and Google. Also the original Chinese version of the app Douyin already has reached 600 million users.

TikTok helped its parent company reach a revenue of $58 billion just the past year, furthermore, ByteDance actually has the most growth than any other major social networking app or network.

According to eMarketer which is a research firm TikTok generated a revenue of 4 billion dollars in 2021 and most of it came from advertising. And to take it further this amount is expected to reach and maybe cross 12 billion dollars at the end of this year. That would make I larger than Twitter Inc. and Snap Inc. combined. TikTok managed all of this just three years after it started accepting ads.

But that is not all for TikTok as it is diversifying itself into Music Distribution, Game Publishing and subscription that are similar to the ones on Twitch. It is also making its way into e-Commerce in ways that could have Amazon.com Inc. feeling challenged.

H/T: Bloomberg.

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