Connect with us

Hi, what are you looking for?

Investing

TikTok rides out wider advertising slowdown

TikTok is expected to ride out the advertising slowdown, as the Chinese-owned social media titan becomes an outlier to the wider industry slowdown.

According to a new report published by GroupM, the media buying agency owned by WPP, TikTok doubled its advertising revenue in 2022.

“This has likely been another driver of the advertising deceleration or “pullback” noted at Meta and Snap over and above macroeconomic factors given that we see less deceleration across other digital platforms where TikTok would be a less obvious alternative (such as Microsoft),” the report said.

However, the report reckons that although marketers may choose to view the platform as a good way to reach younger audiences who are becoming increasingly difficult to target via linear TV, there was a caveat that longer term strategies would “come with increased risk of the platform being banned in additional markets”.

Despite boasting over a billion users, TikTok remains banned in India, and continues to receive scrutiny from the UK, US and European Union, especially over data access from China.

GroupM revised its 2023 forecast for total ad spending growth down 0.5 per cent to 5.9 per cent.

Tech analyst at PP Foresight Paolo Pescatore echoed this sentiment, saying: “As its [TikTok’s] dominance grows this will only draw further attention among regulators and competition authorities.”

He said that this market prevalence was unlikely to vanish anytime soon, with marketeers following eyeballs, which continue to have an increasing focus on shorter form content via TikTok.

Nonetheless, the GroupM estimate come after reports that TikTok cut its global revenue targets for 2022 by at least 20 per cent in September after it struggled to keep up momentum in the face of tightening advertising spend and wider macroeconomic instability.

Head of investment at interactive investor Victoria Scholar has previously said that although Facebook has been at odds with TikTok to nab the attention of Gen Z, the latter’s “overconfidence has led to a spending problem that has got out of control”.

Read more:
TikTok rides out wider advertising slowdown

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Kyle Aristophere T. Atienza, Reporter THE PHILIPPINES under President Ferdinand R. Marcos, Jr. would probably keep close economic ties with China despite a...

Economy

THE PHILIPPINE Justice department has invited a forensic expert from the United Nations (UN) to improve local capacity in investigating extrajudicial killings in connection...

Economy

A CIVIC group on Sunday asked the Bureau of Internal Revenue (BIR) to be fair in its clampdown against tax evaders, citing the tax...

Economy

THE PHILIPPINE legislature, with majority of both chambers allied with the Marcos administration, should exercise its authority as an independent body in keeping watch...

Economy

SENATOR Sherwin T. Gatchalian has filed a resolution to look into the implementation of a law that protects students from bullying and other forms...

Economy

THE HOUSE Speaker on Sunday directed the agriculture and food committee to conduct a probe and possibly recommend the filing of charges against alleged...

You May Also Like

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.