TikTok. If you haven’t heard those two syllables at least once in the last three years or so, you’re probably living in a cave. The social network is used by millions of users around the globe, and in 2024, TikTok is expected to reach nearly $18.5 billion in ad revenue worldwide. And this is a good sign for businesses. Especially for those who know how to make TikTok work for them.
Statistics show that the main group of users on TikTok — nearly 24% — are between the ages of 18 and 24, or the representatives of the so-called Generation Z.
Generation Z’s money is increasingly important to the global economy. This generation, born between 1997 and 2012, has a purchasing power worth around $450 billion worldwide. Their economic influence is only increasing as more of them become adults.
Not only do these young people have money, but according to experts, they are willing to spend it, even in times of great financial anxiety. Also, they are very careful about who gets their money, how and when.
Gen Z spends very differently than older people. Probably the main reason for this is TikTok. Generation Z finds everything on the social network — recipes, restaurant recommendations, travel destinations, products. In practice, the influence of the social network on Internet user habits is quite comparable to the early years of Google, and even poses a serious challenge to the hegemony of the online search giant. Younger users are looking to TikTok and Amazon. They are much less likely to use Google.
TikTok offers authenticity, not buzzwords, say Gen Z. The social network offers niche brands, eschews mainstream, ubiquitous fashion and consumer products.
TikTok’s algorithm is the other thing that sets the social network apart. In fact, the series of user-friendly short videos (reels) manage to keep him on the platform. The average TikTok user is on the app for 82 minutes each day. This led many of TikTok’s competitors to rethink their content – Instagram integrated the concept of reels and YouTube introduced YouTube Shorts to compete for audience. However, the algorithm continues to be the thing that TikTok seems to dominate.
The app has a number of tools to help users monitor their own behavior.
TikTok also redrew the rules in advertising, made many businesses think differently, deploy their content on other platforms, present it in different ways. Additionally, TikTok’s algorithm provides marketers with a level playing field when it comes to reach and engagement and gives every video an equal chance to become super popular.
Gen Z doesn’t just want their own brands and products, they want their own way to find and buy them. If these trends continue, Google will not remain the leader it is today, and many established brands will tire and fade.
Why does this matter to businesses? Unlike Facebook and Instagram homepages, which largely consist of people you already know and channels you already follow, TikTok prioritizes videos from creators you’ve never seen before. TikTok’s user interface is designed to keep people on the app as long as possible.
