TikTok: A Revamp of Vine?

By Julian Tedja
9 July 2019
www.rthree.com
Table of Contents

1 TikTok: Company Profile and Overview

2 Features. Benefits. Watch-Outs.

3 SWOT Analysis

4 Target Audience Profile

5 How Can Marketing Leverage the App

6 Which Brands Are Using It?

7 Miscellaneous/Personal POV

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1 Company Profile

3
TikTok: An Introduction
What is It?
TikTok is the world’s leading

short-form
destination for

mobile videos.

Mission Statement?
Capture and present the world’s creativity,
knowledge, and moments in everyday life.

Purpose?
Empower everyone to be acreator from
their smartphones and build a community
creative
by encouraging

expression.

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TikTok’s Company
Profile
TikTok was able to capitalize on a need for both individuals
and communities to share snackable content and
disseminate this through a seamless platform.

TikTok’s parent company, ByteDance, is worth

75 Billion
Dollars(USD).
TikTok is essentially the international counterpart to Chinese
counterpart app Douyin.

TikTok has grossed over $75 Million

Dollars(USD) through in-app purchases since
inception.

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 Tiktok’s Meteoric Rise
To Popularity
September – Q1 – Most Downloaded October – 500
September - TikTok App in Apple Store/ 6th
ByteDance launched million TikTok
Douying for the China
launched in the Most Downloaded App
United States. In World with Google monthly active
market.
Play and Apple Store. users globally.

2016 2017 2017 2017 2018 2018 2018 2019

January – TikTok and November – August – TikTok merged Q1 – TikTok was the
Douyin are labeled as ByteDance spent $1 with musical.ly, creating third most downloaded
exclusively separate Billion to purchase a larger video app in the world, with
entities. musical.ly. community. over 190 million
downloads.

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 TikTok’s Finances and
Revenue Model
• Bloomberg has reported • In-App Purchases of
that ByteDance has not Coins, starting from 100
yet reported a profit on for $.99 and up to 10,000
TikTok for $99.99

• 2018 Target Revenue was • Musical.ly had a similar

$7 Billion
over profit model and took
20% from each
USD transaction
• Users are able to give coins to
• Rumors of the their favorite TikTok Creators,
Company Going who are then able to
exchange these for virtual
Public this Year gifts

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Key Facts and Figures

• 26.5 of the • 43% of

30
500 million TikTok’s total
global
• More Users on user base is • 66% of Users are
monthly
located in
Android than iOS users are
India
Younger than 30
from the US

• Users spend • 29% of monthly • In-App Purchases

approx. 52 min per users open TikTok increase by 275%
day on the App Every Day year after year

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What Makes It Differentiated from
the Competition?

1 2 3
Simplicity Scope Savings
An easy-to-use Substantial international By relying on user generated
content, localized marketing, and
interface that market entry, universal hashtag campaigns, TikTok has
optimizes on the idea user applications, and been able to organically grow
of the dissemination of unlimited potential for substantially without significant
content for tribes to various niche forms of investment into digital
marketing/advertising
enjoy. marketing.

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2 Features, Benefits,
Watch-Outs

10
Features, Benefits, Watch-Outs
The app allows for users to share videos of 3-15
seconds and looping videos of 3-60 seconds.
Features

Offers wide selection of sounds and song

snippets, with the option for special effects and
filters

Creation of a larger variety of videos, ranging from challenges, dance

videos, funny videos, and magic videos, giving it a substantial Benefits
competitive factor versus Musical.ly

Ability to publish longer videos than the

constraint of 6-second videos established by
previous incumbent Vine

TikTok has faced scrutiny over issues of illegal data collection on

children and being a haven where online predators lurk to exploit the Watch-Outs
underaged

As of May 2019, Indian politicians called for a ban on

TikTok, as the Indian government put greater pressure
on Google and Apple to sanction the app for
pornographic and pedophilic charges
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3 SWOT Analysis

12
 SWOT Analysis
Strengths Weaknesses
• Massive Virality of Easy-To-Produce • Prone to Legal Scandals and
Content Susceptible to Wavering Brand
• Clear Target Market of Expressive Perception
Young Adults • Unclear Profit Model and Monetization
• Network Effects • Weak Content Filtration System
• AI Backed Recommendation • Disincentive for Users to follow
Engine/Customer Database Corporate Accounts

Opportunities Threats
• Capitalize on the mass market • Snapchat. Wickr. Snow. Instagram.
hole that was created with the Facebook Messenger. Tons of Direct
decline of Vine Competitors.
• Douyin also many competitors in
• Mobile Internet Users easily driven
China’s short video platform market
into the short video format • Internet players encroaching on this
• Growth Opportunities in both space
Developed and Developing • Lack of Proprietary Technology
Nations • Questionable Customer Loyalty

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4 Target Audience
Segmentation

14
 TikTok’s Key Audiences
• Most of the Data Aggregated Regarding
TikTok’s Market Segments can be
analyzed through Douyin’s Metrics

• 41% of global users are aged 16-24,

TikTok is heavily targeting the Millennial
and Generation Z Demographics

• Age Segmentation, as opposed to other

types of market segmentation, is
particularly vital for TikTok

• There is also a differentiation based on

gender, as over 66% of TikTok’s Chinese
users are female

• Countries With the Largest TikTok

Database In Order: India, USA, Turkey,
Russia, Mexico, Brazil, Pakistan, Saudi
Arabia, France, Germany

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5 How Can Marketing
Leverage the App?

16
 TikTok’s Inaugural SEA
Marketing Summit
Key Takeaways:

• Three-pronged monetization strategy

of working with brands, content
creators, and localizing content, ex.
#thisissingaporelah campaign
• In Singapore, the hashtag challenge
is the most popular ad format
• Brands with TikTok profiles can
already measure reach and
engagement, can also use creators
who track affiliate links to measure
sales
• Planning to introduce shoppable ads
and one-click shopping globally in
near future
• TikTok failed to address brand safety
issues when execs took the stage

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 TikTok and
Influencer Marketing
• Huge number of micro-influencers available
on the platform

• Brands like Coca Cola, Universal Pictures,

Sony Pictures, and Google have already
worked with Popular TikTok Users

• Should be of particular use to brands looking

to expand their global audiences

• For marketers,
1-Launching challenges and contests with
hashtags will boost brand engagement, and they
work very well on the app
2-Partnering with influencers directly,
despite in an infant stage, has shown evidence
of highly engaged community

• Rumors of native ad testing, targeting

options, and viewability measurement tools

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TikTok and Social Media
Marketing
• TikTok showed Indian brands how to
harness the power of User
Generated Content in Marketing at
ad:tech New Delhi, a leading digital
marketing advertising conference
early in 2019
• SINC – Short-form, influencer driven,
native and co-created – this
addresses diverse advertising
• Potential for Low-Cost, Viral
Marketing Campaigns
• Use of Creative Storytelling which
has resulted in higher interaction
rates
• Less competition for early adopters,
meaning a cheaper alternative to
platforms like Snapchat and
Instagram
• Seen as a more organic play for
digital marketing
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TikTok and Location-
Based Marketing
• Many opportunities for TikTok and
business to collaborate on co-
branded experiences tied to brick—
and-mortar locations
• TikTok should leverage location-
based services, just as shown in the
examples below:
• Burger King could challenge
TikTok users to post stories in
different BK locations
• Firms could provide location-
based branded filters, as seen
on Snapchat
• Events like Coachella could
provide event based
promotions, based on
attendance fluctuations and on
certain times of the day

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6 Which Brands Are
Using It?

21
 Case Study

The Intent
• TikTok launched a promotion with Lootcrate to
increase consumer awareness and attempt to
lower customer acquisition costs
• Lootcrate is a subscription-based service that
providers fandom enthusiasts a box full of
gaming goodies on a monthly basis
• With each friend recommended that
successfully converts onto the platform, that
user gets a free Lootcrate
• This partnership received a lot of exposure on
Reddit, which was able to redirect customers
to this offer as well

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 Case Study

The Intent
• Launched the #UTPlayYourWorld in-app challenge,
a global marketing campaign
• Ran from June 25th to July 11th and invited users
to share “UT moments” while wearing their
favorite UNIQLO UT outfit
• UT is UNIQLO’s collection of T shirts inspired by
pop culture
• Intention of building brand associations with a
wide variety of audiences
• To be eligible, participants needed to select the
music #UTPlayYourWorld, film the video on TikTok,
use the hashtag, and follow UNIQLO’s TikTok
account

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 Case Study

The Intent
• Guess launched a partnership with TikTok to
launch branded content in the US
• Targeted towards Millennials and Gen Z
• Urged these demographics to post videos with
this promoted hashtag
• Merchandise worn by popular social
influencers on Instagram
• Sought stronger foothold in the US as well as
greater market share of Chinese tourists who
visit the US looking to buy apparel

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 Case Study

The Intent
• This co-sponsorship launched #MyTikTokStory,
a campaign surrounding diversity
• Encouraged Indian users to create 15 sec.
videos around their personal passions/identity
• ScoopWhoop is India’s leading youth media
platform for lifestyle and Entertainment
• Sattvik Mishra, Co-Founder and Ceo of
ScoopWhoop Media, “TikTok has taken over
the Indian audience in a unprecedented
manner and the craze is only growing bigger.
We will be debuting further unique contents
exclusively made for the TikTok audience.

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7 Personal Point of
View

26
 My Point of View
• Personally, I do think that TikTok is the
second coming of Vine, albeit with greater
international scalability.

• I see potential synergies with entertainment

tech companies, such as Discord or Twitch,
for Tiktok.

• I see major legal challenges ahead for

TikTok that need to be addressed
immediately, especially concerning the
issues regarding data mining, child
predation and pornography

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Works Cited
https://www.businessofapps.com/data/tik-tok-statistics/
https://walkthechat.com/how-did-tiktok-become-the-first-chinese-app-to-succeed-oversea/
https://influencermarketinghub.com/tiktok-statistics/
https://www.quora.com/Who-uses-TikTok-What-is-their-demographic
https://www.theverge.com/2018/11/30/18107732/bytedance-valuation-tiktok-china-startup
https://en.wikipedia.org/wiki/TikTok
https://mediakix.com/blog/top-tik-tok-statistics-demographics/
https://www.similarweb.com/website/tiktok.com
https://expandedramblings.com/index.php/musically-statistics/
https://www.emarketer.com/content/what-s-behind-the-sudden-growth-of-tiktok
https://musically.com/2019/06/11/tiktok-now-has-120-million-monthly-active-users-in-india/
https://musically.com/2019/05/17/tiktok-was-the-third-most-downloaded-app-globally-in-q1-2019/
https://www.socialmediatoday.com/news/tiktok-is-rising-but-will-it-be-a-relevant-platform-for-brands/549376/
https://www.aicy-create.com/douyin-tik-tok-branding-china/
https://www.mobilemarketer.com/news/guess-launches-inmydenim-viral-campaign-on-tiktok/531472/
https://en.wikipedia.org/wiki/Loot_Crate
https://influencermarketinghub.com/what-is-tik-tok/
https://www.theverge.com/2019/4/16/18411013/tiktok-india-google-play-block-apple-app-store-bytedance
http://money.com/money/5497929/how-tiktok-makes-money-tiktok-owner/
https://fourweekmba.com/tiktok-business-model/
https://www.marketing-interactive.com/uniqlo-jumps-on-tiktok-platform-to-promote-utplayyourworld-
campaign/
https://digiday.com/marketing/tiktok-tells-advertisers-interest-based-targeting-is-coming-soon/
http://www.brainworkindia.net/blog/how-tiktok-and-spotify-could-win-through-location-based-marketing/
https://www.fbicgroup.com/sites/default/files/CNE_Douyin.pdf

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 Thank You!
Julian Tedja
[email protected]

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