In 2024, don’t miss TikTok again

The hottest platform today is TikTok. The opportunities of TikTok are obvious, and everyone wants to give it a try.

It is understood that by 2024, TikTok plans to expand its e-commerce business in the US market to $17.5 billion, 10 times the current size. Industry insiders revealed that TikTok plans to ask US advertising agencies to increase advertising by 50%-150% in 2024, which means that the advertising business may bring TikTok nearly $30 billion in revenue. Previously, some media speculated that TikTok's advertising revenue for the whole year of 2023 may be close to $20 billion.

Therefore, it can be predicted that in 2024, advertising and e-commerce businesses in the United States will generate US$47.5 billion in revenue for TikTok, accounting for about half of the global total revenue in 2023.

Traffic means business opportunities, which will be a huge opportunity for Amazon sellers seeking growth. TikTok's development is also unstoppable, as can be seen from the following aspects.

TikTok's global user downloads peaked in May and reached a peak again in August, and the download data in different months still fluctuated greatly. Despite the restrictions in Western countries, TikTok's ban in the first state in the United States has been lifted, showing the company's firm stance on expansion. As the popularity of short video platforms is increasing with changes in user consumption behavior, TikTok is successfully converting user participation into real revenue.

Data source: Diandian Data

As a global social media platform, TikTok has more than 5% of its users in four countries, namely China, the United States, Indonesia and Brazil. The downloads of users in these countries are mainly concentrated in North America, South America and Southeast Asia. For cross-border sellers, this user distribution provides opportunities for global promotion and sales. Due to differences in user habits, consumption concepts and social characteristics in different regions, sellers need to develop different marketing strategies based on regional characteristics.

From the perspective of high activity, Indonesia and Brazil are countries with an average of more than 100 million monthly active users. The average monthly active user growth rate in the US market in the second and third quarters of this year was quite impressive, with user activity significantly increasing to 9.87%.

For cross-border sellers, the more active the users are, the more likely they are to find more potential trading partners. When Indonesia's social and e-commerce markets split and returned, TikTok's e-commerce business in Southeast Asia went through a process from full development to troubled times and then to the current recovery stage. Future development trends are still difficult to predict. Among the remaining markets of nearly 100 million potential users, the United States is undoubtedly the key to new growth.

In terms of user composition, the proportion of TikTok users aged 18-25 is slightly higher than other social applications, and the proportion of female users is slightly higher. TikTok's user group shows obvious "younger" characteristics, with female users aged 18-23 accounting for 20.08% and male users accounting for 14.7%. Whether it is the distribution of user age groups or the ratio of men to women, TikTok's user range is very wide. Most users are aged between 18 and 23, which shows that TikTok is increasingly attracting the attention of many brands in the Generation Z market.

In the third quarter of this year, TikTok's in-app purchase revenue achieved a significant breakthrough, doubling compared to the same period last year, showing huge potential for future revenue growth. It is worth noting that not only is the overall consumption level considerable, but each consumer's willingness to consume is also very strong. According to data previously released by TikTok, 67% of users said that TikTok would stimulate their desire to shop, which shows that TikTok relies on a strong short video user ecosystem, and the consumption potential of users cannot be ignored.

Data source: Diandian Data

In summary, it can be seen from TikTok's e-commerce data that sales in Southeast Asian countries, especially Thailand, Vietnam and Malaysia, have increased significantly, and the growth rate in the second half of the year was significantly faster than that in the first half of the year. However, in the European and American markets, the growth of the British market was relatively slow throughout the year, and the actual business environment also made many practitioners worried. At the same time, the US site presents potential development opportunities, attracting the attention of many sellers. With the development of TikTok's e-commerce, the differences and changing trends between different markets will be further revealed, bringing more business opportunities and challenges to merchants.

Whether you are already doing Tik Tok or are preparing to do Tik Tok, we hope that everyone can work together to conquer the new cross-border battlefield.