ByteDance spent $19.2 billion on marketing in 2021

In light of the latest Wall Street Journal report, ByteDance, the parent company of the famous short video platform, TikTok, spent a hefty amount last year in terms of marketing.

Everyone was left in shock after it was revealed that ByteDance spent almost $19.2 billion to market its applications. As compared to the largest social media group, Meta, ByteDance was able to spend $5 billion more than what Meta used for marketing in 2021. The reason why it got everyone by surprise was that Instagram and Facebook have been out there for a very long time. However, these two platforms have billions of users combined. Despite holding such an important position among users, a company that came way after Meta-owned apps has taken steps that left social media giants behind.

The budget used by ByteDance is not just surprisingly large as compared to Meta, but as compared to the combined budgets of Twitter, Pinterest, and Snapchat, the budget only adds up to just one-seventh of what ByteDance used for its marketing.

However, the results are also in favor of the China-based company. The turnover for TikTok is fairly visible. In response to the company's $19.2 billion investment, ByteDance was able to generate nearly $61.7 billion in revenue last year. This was about an 80% rise in the overall revenue collected by the parent company in 2021.

The reason why ByteDance was forced to take such risky steps is not so hideous. Ever since TikTok made its debut, watching the way it attracted users through its short video content, other social media applications such as Facebook and Instagram have also started to introduce short video features on their respective platforms

The rate at which Meta is working to make Instagram Reels more attractive is alarming and, hence, if ByteDance decides to use heavy amounts like this to secure the growing influence of TikTok, it is valid.

However, the real competition is now being given by YouTube. The mega video sharing platform has introduced its TikTok-like feature, YouTube Shorts, which has attracted a number of users and is now giving a head-to-head competition to TikTok. This rivalry is also evident when it comes to being the most earning application. Both YouTube and TikTok were able to earn $48 million in a single month.

Hence, as long as ByteDance continues to receive positive results through such marketing strategies, it can be expected that the company won’t hesitate to spend money to secure its spot.

H/T: Chartr

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