The Strategist

TikTok is getting ready to fight for ads revenues

06/18/2019 - 16:25

The most anticipated debut at the Cannes Lions-2019 festival will be the Chinese video application TikTok. It began testing ad placement features and is going to compete for advertisers with Instagram and Snapchat.

TikTok has begun testing various products for advertisers, the Financial Times reported, citing several sources familiar with the company's plans. According to them, TikTok is testing placement of standard vertical video ads, which are now actively used by Instagram. Another option being studied is advertising that pops up on the screen. TikTok can also apply filters in advertisements that are similar to those available in the Snapchat messenger.

In addition, according to two sources, great interest was caused by the advertising format in which brands will be asked to start their own viral video campaign.

A TikTok spokesman declined to confirm the details, saying only that the company “is exploring many opportunities for partner brands.”

The festival in Cannes opened on June 17th. According to FT, TikTok brand director in the USA Stephan Heinrich will present the application to advertisers on the main stage. In addition, representatives of TikTok will speak at round tables.

“This platform has interested many advertisers not only because of its scale, but also because of its target audience — the Z generation,” said Simona Marmina, Senior Director of paid promotions on social networks in Mindshare WPP. She notes that users spend an average of 46 minutes a day in TikTok, and the number of video views per month reaches 37 billion. "This is a crazy audience reach," said Marmina.

According to analysts and advertisers, one of the obstacles to advertising monetization of the service may be the lack of a special service that allows advertisers to buy advertising and track the response online. Now advertisers are forced to request this information in the sales department of TikTok. According to Marmina, the company intends to submit relevant tools to advertisers later this year.

TikTok is owned by ByteDance, a privately held Chinese company valued at $ 75 billion. The application allows users to watch, create and share short videos, usually with pop music. Bloomberg wrote in May that the TikTok app has been downloaded over a billion times around the world. Now the company is working to promote itself in the US and Europe and is trying to attract veterans of large technology companies, writes FT. In particular, TikTok hired Blake Chandley, who once became the first Facebook employee in Europe, as well as Vanessa Pappas from YouTube.