As a new star among the social media platforms, TikTok can show enormous user growth. But ByteDance’s sales are growing more slowly than hoped.
Social media platform TikTok has seen impressive growth since the start of the 2020 pandemic. Not least because of this, according to Reuters, the company behind the app, ByteDance, generated sales of $34.3 billion. In the past year, however, the percentage growth in sales could not be topped again.
70 percent sales growth means a decline for ByteDance
The Beijing-based parent company has now announced that the company’s sales grew “only” by 70 percent last year, which corresponds to an increase of 58 billion US dollars. In 2020, growth was still 100 percent compared to the previous year. According to insiders, this is related to China’s growing influence on tech companies. Tencent and Alibaba, for example, reported declining growth. The reason for this is that legislation in the country is increasingly influencing how company deals and interactions with users are to be carried out.
Even considering the slightly declining increase in sales, ByteDance is currently the second largest company in the Chinese online advertising sector. And worldwide, TikTok’s parent company is now playing in a league with the big tech companies: Reuters reports a market value of over 300 billion US dollars.
Despite the financial setback for ByteDance, TikTok should have no reason to be dissatisfied. After all, a large part of Gen Z now favors the social app and ignores Facebook and Instagram. Young users spend a large part of their screen time on the addictive app, which now has one billion active users.
Source: OnlineMarketing.de by onlinemarketing.de.
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