While advertisers wait to see if the White House actually does ban popular social media app TikTok, Walmart has joined Microsoft in its pursuit of the platform, seeking to reach a deal with Chinese parent company ByteDance. Oracle, too, has been looking to snap up TikTok in a deal that could be worth $20-$30 billion. That corporate giants like, Oracle, Walmart and Microsoft are interested in TikTok is not hugely surprising given the 18-34 demographic it caters to.
The short-form video platform has become a key part of youth culture, and advertisers have been flocking to the app, enabling TikTok to build up a nascent advertising business. With a ban potentially looming, however, many ad buyers are worried about what might happen to their campaigns should the White House follow through on its threat. A few weeks ago, TikTok promised ad buyers that it would honor any paid campaigns, refund those it could not fulfill, and even work with social media influencers to migrate to other platforms in the event of a ban.
Interpret’s New Media Measure® continuously tracks the behaviors of US consumers across numerous social media apps, and it’s easy to see why so many marketers would want to leverage TikTok’s 100 million US userbase. Nearly half (49%) of TikTok’s weekly users are in the 18-34 age group, and importantly, almost a quarter (23%) live in households with net income over $100K. This puts TikTok ahead of other social platforms and offers marketers a mouth-watering prospect: the ability to target young consumers with disposable income. Moreover, over one quarter of TikTok’s weekly users indicate that they enjoy ads that are interactive.
Advertising expert Gary Vaynerchuk, CEO of VaynerMedia, told CNBC that TikTok is especially interesting because of its ability to offer brands organic growth through personal content. Leveraging TikTok creators who have cultivated authentic relationships with viewers to generate impactful influencer campaigns is a great way for companies to use TikTok to market their brands.