(Reuters) – Accused of Trump administration ‘s opposition to the Chinese government, TikTok’ s advertising business looked grim in July last year.
Big brands supported spending even as TikTok officials offered advertisers a refund if the hot social media platform was banned from operating in the United States.
But after it became clear that Joe Biden had won the US presidential election in November, that all changed.
“Interest in TikTok has exploded,” said Erica Patrick, vice president and director of social media at Mediahub Worldwide, which has worked with brands such as Netflix and Twitch. She said she expects consumer spending to rise sharply over the next six months.
As the Biden administration halts a government lawsuit filed by Trump officials, corporate sponsors have raced back to the popular short video sharing app, maintaining advertising campaigns and trying out new ways to reach consumers, three ad agency executives told Reuters.
The awfulness about national security and TikTok in the previous administration seems to have been “more of a stunt,” and it wasn’t a major concern for advertisers, Peter said.
Trump’s loss in the election was the turning point for many advertisers who were previously “on the fence” about TikTok, according to one media outlet.
As business picks up, the platform has also spoken to major brands on their own in an effort to address major concerns such as the placement of their ads, the buyer said.
While TikTok’s U.S. advertising industry is still considered small compared to larger social platforms, TikTok said it has tracked a 500% increase in advertisers running campaigns in the United States over on 2020. It says it has ongoing discussions with advertisers about brand safety. .
Since the end of last year, TikTok has signed McDonald’s, Kate Spade, Chobani and Bose, as well as nonprofits including St. Jude Children’s Research Hospital, a TikTok spokeswoman said.
Bose has found that ads on TikTok are monitored longer than on other platforms, said Christina Kelleher, global social media manager for Bose.
St. Jude has raised about $ 50,000 since September through a donation button on TikTok, according to ALSAC, the fundraising and awareness group for St. Jude.
“TikTok is one of the fastest growing platforms,” said Rick Shadyac, ALSAC chief executive, adding that “the group’s first advertising campaign in December had excellent communication. with actress Ashley Tisdale. ”
NEW OPPORTUNITIES
As the app seeks to make more money and take advantage of its huge Gen Z audience, TikTok’s revenue ambitions have grown and are now taking its toll. selling high-dollar advertising packages based on holidays or major events.
To mark Black History Month, TikTok will host a meaningful event with 500 Black creators on Thursday and has invited brands to support the event for $ 750,000, according to a TikTok sliding deck acquired by Reuters.
The company has also asked for $ 1.5 million badges to support a live finale event on Feb. 26 with artist and special guest performances, the sliding deck showed.
E-commerce is a growing priority, TikTok said in a statement, as the company aims to take over Instagram on Facebook, allowing users to purchase products directly through the app.
TikTok said it is exploring allowing users to share affiliate product links on the app, which could allow influencers and TikTok to earn commissions from sales.
Influence marketing, which is already a major form of advertising on TikTok, continues to grow as more brands tear up to pay top celebrities for their dance routines or comedy sketches to produce promote to millions of followers.
The Impact Marketing Factory, which has worked with brands including Dunkin and Amazon to secure content deals with social media stars, has seen a fivefold increase in requests from aspiring brands. to work with TikTok influencers since November, said Alessandro Bogliari, the group’s chief executive.
Even positioning companies such as financial services companies are asking how they can access the app, after GameStop’s trading mania showed that younger users have more different interests than some advertisers has been expected, said Joe Gagliese, chief executive of the influential marketing group Viral Nation.
“TikTok has changed diametrically, you see finance and fun on that,” Gagliese said. “That’s what fuels other brands to come in and play. ”
Reciting with Sheila Dang; Edited by Kenneth Li and Daniel Wallis