How Does TikTok Make Money? TikTok Business Model

Net Worth$75 billion
Headquarters 5800 Bristol Pkwy Culver City (HQ), CA the United States
Year Founded2016
FounderZhang Yiming a former Microsoft engineer and serial entrepreneur 
CEO       Shouzi Chew
Company Linkhttps://www.tiktok.com/about?lang=en

Introduction

TikTok is a short-form video-sharing app that allows users to create and share 15-second videos on any topic they want. TikTok also has a separate app for the Chinese market called Duyin, which has over 300 million active monthly users and a new app logo that combines the Musical.ly and Duyin logos.

Even though TikTok is derived from Musical.ly, an app where individuals lip-synched to audio snippets and shared the videos with their friends and families, it might be perplexing and difficult to use for those who are new to it.

Due to the app’s unique video editings features, such as filters, music, transitions, special animations, graphics, and basic editing functions, TikTok is referred to as purely a video-based platform that allows one to produce material directly within the app or upload from your smartphone.

The TikTok app provides users with a large selection of noises and song snippets, as well as the ability to add unique effects and filters, as well as the ability to upload movies directly from your phone.

Users of TikTok can make a wide range of videos, including challenges, dancing videos, magic tricks, and amusing videos.

Growth Journey Of TikTok

We all know TikTok is a short-video app popular among teenagers all around the world, but it didn’t start as TikTok as we know it today. It was first known as Douyin, and it was first introduced to the Chinese market in 2016 by Beijing-based company ByteDance. It is similar to Facebook, but ByteDance is a Chinese company that owns several other popular networking apps, and it was founded in 2012 by CEO Zhang Yiming, a former Microsoft engineer and serial entrepreneur.

Douyin reached 100 million users within a year of its launch, and in 2017, it launched iOS and Android versions in international markets under a new name — TikTok, which quickly rose to the top of the charts in many Asian markets, and in 2018, ranked No. 1 among free app downloads on app stores in Thailand and ranked fourth globally as the most downloaded non-gaming app.

While TikTok was rapidly gaining popularity around the world, another short-video app — Musical.ly — had already gained traction in the United States, having launched in 2014 and allowing users to produce 15-second lip-syncing music videos.

Musical.ly was purchased by TikTok’s parent firm, ByteDance, for around $1 billion at the end of 2017, and Musical.ly and TikTok were run as two independent social media platforms until August 2018.

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In 2018, TikTok merged with Musical.ly to create a larger user base and officially enter the US market. All existing Musical.ly profiles and data were consolidated into TikTok, and Musical.ly was shut down, giving TikTok a stronger foothold and wider coverage.

TikTok added the reactions feature in September, which allows users to record and share their reactions to videos. In addition, TikTok has added a digital well-being feature, which alerts users when they spend more than two hours on the app.

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What Is The Net Worth of TikTok?

Because TikTok is a somewhat private firm, it’s difficult to tell exactly how much it’s worth; nonetheless, it’s simple to estimate its worth based on its advertisements.

TikTok valuations were put at $50 billion in 2020, but some experts believe it will be higher in 2022, at $75 billion. Based on this, it is safe to say TikTok’s net worth is at least $50 billion, and up to $75 billion, while ByteDance, TikTok’s parent company, is worth up to $425 billion.

This means that, while Facebook and Instagram were thriving, TikTok was lagging, attracting little attention even though it was launched only a few years ago, in 2012, and was initially known as Musically.

Despite TikTok’s youth in comparison to Facebook and Instagram, it has skyrocketed in popularity in recent years, and we predict it will continue to do so in the future.

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What Is The Staff Strength of TikTok Company?

TikTok, a Chinese start-up with 60,000 workers, has more than 10,000 unfilled positions worldwide, ranging from a Beijing-based data analyst for its Latin America division to a Shenzhen-based operations manager for its gaming platform. Furthermore, the company’s internal job postings indicate that it is looking for 3,000 interns and more recent college grads.

The company is recognized for its high salary and benefits, as well as incentives that more closely resemble Silicon Valley-based start-ups, such as free three meals daily for staff and “unlimited snacks,” as well as gym memberships.

ByteDance founder Zhang Yiming predicted in March that the eight-year-old company would have 100,000 employees by the end of the year, putting it well ahead of its primary rival Tencent, which had 62,000 employees at the end of 2019.

ByteDance also plans to increase its workforce in Wuhan, where the coronavirus outbreak originated, to over 5,000 workers, joining a lengthy list of Chinese enterprises that have pledged help for the metropolis of 11 million people, which has been severely impacted by the recent pandemic.

At TikTok, here’s a list of some of the people who work there, along with their titles.

  • A.J. Figliolini is the Head of Compensation and Benefits
  • Masoud Loghmani is the Product Manager
  • Nicky Raghavan – Global Head of HR
  • Stephanie Hind is the Leading Creator Management and Operations
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What Is The Revenue of TikTok?

ByteDance, the parent company of TikTok, reportedly made $17.2 billion in income in 2019, with domestic ads on the Chinese version of TikTok, branded Douyin, accounting for around two-thirds of that total. Live streaming, games, and e-commerce provided additional money.

TikTok made $1.9 billion in income in 2020, according to Business of Apps experts, and was recently estimated to have been downloaded three billion times, three times the previous level.

What Competitive Advantage Does TikTok Have Over Its Counterparts? 

Anyone who remembers Vine will recognize the similarities between TikTok and Vine. There was a clear market opportunity for short-form content at the time, but something was missing: the shareability of once-only content on a vine, which TikTok provides.

When you’re an influencer, a brand, or just someone who wants to be active on social media, it takes a lot of effort to stay consistent with both creating and sharing content across channels. TikTok is by far the most accommodating platform for cross-platform sharing, and it encourages users to spend more time on the app because they can create content more quickly.

Another important difference between TikTok and other platforms is its aim, which is to “Inspire Creativity and Bring Joy.” The program innately needs users to learn editing skills and how to think outside the box to capture a huge idea inside the confines of short-form video.

ByteDance’s investment in tightly moderated content is partly to blame for keeping content upbeat and encouraging, especially when compared to other channels that have been chastised for promoting negative body image and enabling cyberbullying.

There are so many elements accessible within the app to help bring your vision to life, from filters, effects, and voiceover to sound effects, and exploring those numerous opportunities to get creative is how many videos go viral and establish new trends.

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Who Is The Founder Of TikTok

Zhang Yiming founded TikTok in 2012 and has since gone on to become an unqualified business success. According to Forbes’ Real-TimeBillionaires List, the 37-year-old former software programmer is now worth over $59.4 billion, putting him the world’s 22nd wealthiest person. Yiming is ranked second among China’s wealthiest people on Forbes’ China Rich List.

CEO of TikTok

This should cover the major changes that happened at every CEO tenure This should capture information about the Company’s CEOs from past years.

List of TikTok’s Top Shareholders

The top shareholders of TikTok are

  • #1 CMB Wing Lung Bank
  • #2 Morgan Stanley
  • #3 Goldman Sachs
  • #4 Bank of China
  • #5 K3 Investors
  • #6 Primavera Capital Group
  • #7 KohlbergKravis Roberts
  • #8 Tiger Global Management
  • #9 GGV Capital
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TikTok Company’s Social Media Handles

Some of the major of TikTok’s social media Handles are;

  •  https://www.tiktok.com/about?lang=en
  • http://bit.ly/naijatiktok
  • https://www.instagram.com › TikTok

Future of TikTok Company

According to Statista, the company was perfectly positioned to benefit from the global quarantine imposed by the coronavirus pandemic, and the app has been downloaded over three billion times and has one billion annual users as of the second quarter of 2021. While TikTok is the most popular app in the United States, edging out Zoom by seven million users and beating Instagram by 27 million.

CNBC highlights that one roadblock for TikTok has been the US government’s security concerns about the app, which led to an agreement for Oracle and Walmart to take over TikTok’s US operations. However, that deal has been put on hold indefinitely while the Biden administration investigates security threats from Chinese tech companies.

According to the South China Morning Post, ByteDance’s highly anticipated initial public offering has been postponed until late 2022 due to the Chinese government’s regulatory crackdown on internet businesses, as a result of which some private investors have attempted to divest.

TikTok still has a long way to go before it can compete with firms like Apple, which are valued at $2 trillion. However, the basic truth is that user penetration and in-app income are both increasing steadily, pointing to a bright future for TikTok in the near term, as long as it isn’t stifled by rules in the United States and China.

Summary

The new app is being marketed as a social video-sharing platform. TikTok is substantially different from any other app that American users have used before. It may have the same look and feel as its friend-feed-focused counterparts, and you may follow and be followed, but users can and do use it like any other social app.

Frequently Asked Questions

What is TikTok?

TikTok is a social video app where users can create vertical, short-form (15 – 60) videos.

Who are TikTok's top competitors?

TikTok’s top 3 competitors are Triller, Dubsmash, Byte.

What is the Net Worth of TikTok?

The Net Worth of TikTok Company is estimated to be $75 billion.

Who are the stakeholders of TikTok

ByteDance has the highest stake of 80% of TikTok Global, while Oracle and Walmart share the remaining percentage.

References

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