As more people, particularly millennials and Generation Z, use social media to view videos, both Meta (formerly previously Facebook) and Snapchat have stated that the future of social media looks more like Chinese short-video creating tool TikTok.
Snap CEO Evan Spiegel stated during an earnings call that people are spending less time on Snapchat watching friends’ Stories.
Instead, Snapchat users are increasingly turning to Spotlight, a TikTok feature and Snapchat competitor, to view videos.
“This is consistent with the trajectory we’ve seen during the pandemic, and daily active user-friend story publishing and viewing haven’t restored to pre-pandemic levels,” Spiegel told investors late Thursday.
“While we hope that our community will return to the friend’s story behaviors we saw before the epidemic in the future,” he continued, “we are focused on innovating on our content offerings in best serving our community now.” TikTok is rapidly expanding, according to Meta CEO Mark Zuckerberg.
“People have a lot of options for how they want to spend their time,” he said at Meta’s earnings conference this week. “Apps like TikTok are developing extremely rapidly.”
The amount of money spent on TikTok by people all around has only increased. Last year, users paid $2.3 billion on the mobile app, including the iOS version of Douyin’s Chinese localization.
According to Sensor Tower, this sum represents a 77% year increase from $1.3 billion in 2020.
In Q4 2021, consumer expenditure on ByteDance’s short video platform totaled $824.4 million, more than double the $382.4 million produced in the same quarter in 2020.
Although China is still TikTok’s largest market in terms of consumer expenditure, its proportion has shrunk dramatically.
In Q4 2021, Chinese consumers accounted for 57% of in-app spending, whereas in Q4 2020, China’s App Store accounted for 85% of in-app expenditure.
The United States remained TikTok’s second-largest income source, with its percentage of expenditure increasing year over year.
During border tensions with China, the Indian government banned the popular short-form video app TikTok, as well as numerous other Chinese applications, in June 2020.
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