Facebook worried as TikTok set to eclipse Twitter and Snapchat ad sharing
The meteoric rise of TikTok has baffled Meta (formerly Facebook) as the Chinese short-video app is poised to overtake the global ad share of micro-blogging platform Twitter and photo-sharing platform Snapchat this year.
Additionally, TikTok is expected to catch up with Google-owned YouTube in earning $23.6 billion in ad revenue by 2024, reports The Guardian.
“Last year, it overtook Snapchat’s global ad intake,” the report said on Saturday.
TikTok, which was banned in India in June 2020 with several Chinese apps in the first batch, is expected to triple its global ad revenue by $11.6 billion this year – more than $10.44 billion for Snapchat and Twitter combined.
A TikTok user spent an average of 19.6 hours per month on the app last year, according to data.ai, which equates to Facebook seeing its user growth stagnate and decline among Gen Z and Gen Y.
With Facebook still having 2.9 billion monthly active users and Instagram nearly 2 billion and Meta recording $118 billion in revenue last year, the Mark Zuckerberg-led company is concerned about the rise in power of TikTok.
Facebook has been losing users for some time as TikTok usage surges in the US.
Meta’s recent earnings report indicates that Facebook’s active users fell by nearly 5,000,000 at the end of last year.
Meanwhile, TikTok became the top-grossing offline app in Q1 2022, generating $821 million in consumer spending during the quarter.
On Google Play, it came second to Google One, which topped the chart with nearly $250 million, according to Sensor Tower.
A latest survey of teens claimed that TikTok and Snapchat are the two most popular social platforms among teens, with Instagram in third place. Only 3% of teens said they prefer Facebook.
A Washington Post report late last month claimed that Meta paid a major Republican consulting firm to slander TikTok.
According to the report, Meta led a national campaign to sow distrust in one of the company’s main competitors, TikTok.
The company called Targeted Victory published opinion pieces and letters to the editor against TikTok in major local and regional newspapers across the country, according to the report.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)