December 17, 2019
TikTok with its growing number of downloads and constant news report of the company regarding its marketing facts and business insights, has become one hot trend among social media platforms. It is a video-sharing social networking service owned by ByteDance, a Beijing based company founded in 2012. But it only has been in the U.S. market for one year. According to Oberlo’s info research, TikTok currently has 500 million active users. Reports from news outlet like CNBC also pointed out that TikTok had absorbed a lot of Facebook’s employees and making it as one fast growing of enemy. Although Facebook and TikTok are both advertising based social media platforms, there are still huge differences that will allow TikTok to counter Facebook.
Functionality
This is probably the biggest biggest difference that set TikTok apart from Facebook. Just by reading the description online about Tiktok, it’s easy to find out that what TikTok is. But Without actually using the app, you will never be able to reach its the app the full potential. After you got your account and logged in, the first user interface will be an entire trending and recommended page right in front of you. Users are able to consume a lot of memes within seconds just by swiping up and down. Of course TikTok has the function of content search, trend search and making the content just like Facebook’s Instagram. There are also functions that will allow people to explore.
BGM Info button: It allows people to click on it and find out what background music is used for that video. people could also look what other short videos are created by other people with the same background music.
User Interface: User info, like, comment, share functions are only small icons listed vertically on the right side of the screen. It gives users much focused and direct viewing experience.
Meme recreate: Users can find out not only the meme but also can recreate the meme and attend the trend discussion.
Original music creation: TikTok also allow people to add their own original creation of music and listed as a separate category.
Product placement: Unlike Facebook and Instagram, TikTok’s product placement will only appear near the end of a story which a small button will pop up for example saying “shop the same outfit of the girl”.
All those functions mentioned above not only give users the ability to easily create their own stuff, but also provide better usability which every function and icon can be clicked easily by people’s thumb.
Business Model
Compare to Facebook and Instagram, TikTok’s business model is easy to understand since they are all based on advertising, user IP and data. This kind of business model can be found through all social media platforms. Information about Facebook’s counter plan is already out there waiting to be executed. According to the reports, Google is acquiring Firework and Facebook came out a similar app called Lasso to counter TikTok.
Although the business model mentioned above can be easily replicated, TikTok’s business model has its own uniqueness. TikTok has already has acomplete ecosystem of content creation including video, music, meme integrated into a social media platform in China’s market. Moreover, the app also support third party involvement that are geared toward creativity. In short, it is a mixture of Instagram, Facebook, and YouTube powered by AI. Its native ecosystem also allows natural product promotion, marketing, placement through influencers which they are all involved in the circle of grass root creativity and engagement.
As result, Facebook’s Lasso app could also compete with TikTok in the near future, but it will set itself up to compete with TikTok in markets where it’s already big.
Will TikTok Run out of Steam?
Talking from the point of advertising and programatic buying, TikTok is just another app that is powered by data, AI and content creation. Other insiders are also saying that Facebook thinks that TikTok’s current success is mainly backed by heavy advertising and marketing by ByteDance spending millions of dollars. But is it?
No matter it is traditional advertising, social media promotion, programatic buying, the function of platform in terms of advertising is just the mechanism of information communication. The ultimate purpose of advertising will be product itself. ByteDance may lost and Facebook could win because of its similar product Lasso. But as long as Lasso and TikTok are communication planforms they will needs audiences.
Today, Gen Z audience group is active and constantly engaging with trending topics. Facebook’s competition with TikTok might be the race will always be the competition of fighting for user audiences.
Just Life Bridge 