TIKTOK CASE STUDY
Tik Tok silently killing Instagram 29 June 2020, India government bans more to 58 Chinese apps with Tik Tok And overnight the lives of 200 million users are changed forever Now to overcome the addiction of these 200 million addicting Tik Tok users A short video platform was needed. And to fill this gap, things like one after the other First Moj, then MXTakaTak and Instagram reels were started in July. And seeing the high growth of over 150 million users just a month ago, YouTube Shorts and Josh app were launched in Sept. But in today's time, YouTube shorts and Instagram reels are the only two things that are competing with the worldwide TikTok. But you know what Due to the ban of TikTok inside India, where we feel that the future belongs to reels and shorts But inside the international market TikTok is Brutally killing Instagram reels But how? How is TikTok able to do all these things? What did TikTok do, where it had 1.5 billion downloads in 2020 It reached 3.3 billion downloads by 2022 And most importantly, What is TikTok doing after all, which is going to be a big threat to Instagram reels in the coming time.
Well, to understand this thing, it is very important for you to understand 3 things.
No.1, Market After all, in which market they both fight.
No.2, AD Inventory Model How does the Ad Inventory Model of these two works?
And third and most importantly, Impact After all, what impact is TikTok Worldwide creating that most people do not see?
So, first of all, If we talk about market, then there are 2 types of market exist No.1, Long video market like the YouTube that you are watching now No.2, Short video market Inside which Instagram Reels and TikTok are competing at the moment. Not only in India, if we look internationally then there are 3 players inside the short video market who are competing in a very strong way. No.1, TikTok No.2, Reels And No.3, YouTube shorts Now look at this very-very carefully So that you know what the actual difference between these three platforms is. TikTok If you observe very closely then TikTok is an entertainment centric platform. Singing, Dancing, Comedy You will get most of these videos on TikTok And TikTok promotes these videos as much as possible. The interesting thing is, To create all these entertaining videos, there are many effects inside TikTok. So, a normal TikTok creator by recording video from his own phone, by adding good effects to it, Make his own video in a proper way and upload it on top of the platform without any help from the platform. Everything for TikTok Videos is given inside their platform. The biggest advantage of which is that the creators who are creating that content take the least time. Along with this, It is also a very high convenient So, in term, Which will have more convenience and the less time it takes the faster the output will be. So technically speaking, The creative friction that TikTok has kept for the creators So that more and more people can produce short video content. So, if you see, more than 60% of the audience on TikTok is from 10 years old people to 25 years old people That is, there is a Generation Z Why? because it is very convenient for them to make all the things from their own phone and easily upload them on the platform. Without needing any editing skills On the other hand, if we talk about YouTube Shorts Then YouTube Shorts is an education centric platform Where you will get to see more such things as Customer Reviews, Tutorials, Quick Unboxing Now the cache is To make education centric video on YouTube short, First of all, you should have a good knowledge of that particular field No.2, You should have good editing skills Because YouTube shorts do not give you anything So that you can edit the video very well The result of which is that the creators take more time to make YouTube shorts That is, Slow output So basically, The creative friction is on YouTube short is too much as compared to TikTok But if we talk about Instagram Reels Then Instagram Reels comes somewhere between these two Because Instagram Reels is a mixture of Education + Entertainment So, if you look cooperatively then to make Instagram reels you have moderate knowledge of anything then it will work too. You Don't Need Very High-Class Editing Skills But still You would require some kind of editing skills Due to which your output is comparatively slower than TikTok videos That is, as fast as you can create videos on TikTok You will take comparatively time to do on Instagram. That is, the creative friction over Instagram is in the medium range And that's why Instagram reels and YouTube shorts are not as popular as TikTok. According to a report of inware Intelligence by Data Platform, 44% of people are such who prefer TikTok more as a short video platform Over and above, Instagram reels and YouTube shorts But that's exactly why Well, there's an answer to this thing Per day user engagement time Now listen to this very-very carefully This is the harsh reality But the biggest motivation for any creator to create content is revenue earn And the revenue that those people earn It really depends on these 2 factors. No.1, User engagement That how much are users engaging with their content And No.2, Ease of content creation How easy it is for them to create a content If we talk about user engagement then the digital engagement company according to the similar web, TikTok user spends 1 hour 27 minutes of every day. And the same person spends 1 every 21 minutes on YouTube shorts But on Instagram, his engagement time remains only 41 minutes. So technically speaking His user engagement time on Instagram is half that of TikTok So, if a content creator is creating any content on TikTok and thousands of views are coming from it So, because the user engagement time is less on Instagram so it may be that it gets only 500 views there for the content of the same thing. The more views, the more user engagement And the more user engagement, the more brand leverages for sponsorships and brand promotions and the other is ease of content creation As compared to TikTok on the Instagram reels Neither it has that many effects nor it has that much ease So, if there is also an entertainment content creator it is easier for him to create content on TikTok. as compared to Instagram reels TikTok is banned in India that's why we are forced to work with reels and shorts. But if you see internationally So, a short format content creator always prefers TikTok as compared to Instagram reels or YouTube shorts I know what you are thinking As Indians, we never even remember TikTok So, after all, how is the engagement time of Tiktok more than Instagram reels Well, this is where profiling data shows its greatness Which actually effect their Ad Inventory Model. Where Instagram has 2 billion users, TikTok has 3.3 billion users. that is, 1.3 billion users are more than Instagram. Now this is 130 crore people more than TikTok It creates a huge gap inside the data accumulations. So basically The more users there are, the more data will accumulate on that platform. The more data accumulates the better it will be able to do customer profiling The better the customer profiling, the more powerful the algorithm becomes When the algorithm is more powerful the more user engagement time increases Due to increased user engagement time, more brands come to the platform Due to the arrival of more brands Those who are content creators start producing more content As a result, More users start coming on of that platform. And this whole thing makes the creator user ecosystem The more powerful the creator user ecosystem on a platform the more expensive their ad inventory will be Or simply say that their ad inventory will be bought in the same bulk volume by brands So, the ad inventory of TikTok is which is comparatively more expensive than Instagram And even if you cannot say expensive, then there is a sale in more bulk volume to the brands But TikTok is just a vertical short video platform. Where you can upload video of only 60 seconds Whereas, Stories, posts on top of Instagram as well as Instagram reels and IGTV That is, you can post content on Instagram in 4 different forms. But, According to a study report, 22% more engagement comes on Instagram reels from posts and IGTV. So technically speaking The reel portion of Instagram there has the highest customer engagement time And if we look at it, it is its biggest competitor. that is TikTok That's why anyone for their brand promotion Finds such a short video platform where content creators can create as much content as possible And if we see in that scenario Then creating content on TikTok is much easier than on Reels. But, Which is the third factor that will make TikTok so powerful in the coming time That it will be very difficult for both shorts and reels to compete with TikTok. TikTok forms a partnership with Shopify and the beginning of TikTok shopping This partnership helps Shopify merchants to create and promote marketing campaigns on TikTok without them even leaving the Shopify dashboard Due to which the advertising revenue of TikTok Which was only 4 billion dollars in 2021, is estimated to be 12 billion dollars within 2022. Using TikTok Shopping, any Shopify merchant can add a shopping tab on top of their TikTok profile. Due to which whatever users are there, they can buy anything directly from there through shopping tab. Without them leaving the TikTok app Whose long-term effect will look like this Mainly, TikTok is working on these 2 things Which will create a very powerful impact No.1, TikTok Shopping The one who is giving them entry inside the E-commerce market and those who are consuming the content They can shop at the same time. For an example, Now you see a reel in which someone is making a cake You can directly order that cake by going to TikTok Shopping And the other is TikTok creator hub TikTok is creating a Creator Hub where brands can directly tie up with creators So, all the middlemen are there, they will not be needed. And on top of each brand deal, which is being done by brands on Tiktok, out of that, TikTok will also earn commission. This is how TikTok Which they are having accumulations of massive data Gaining a competitive advantage internationally by leveraging it TikTok shopping will bring more users to TikTok TikTok Creator Hub will bring more content creators to TikTok By using this, these 2 things are going to come to TikTok. No.1, More Advertisers The more users the more advertisers And No.2, More Brand Deals Because TikTok has TikTok creator hub So TikTok every single brand deal that is happening on their platform Will earn commission of some percentage on top of that too And as a result, As the user base of TikTok continues to grow More and more brands will continue to increase their advertising spends on TikTok. But, Brands have limited expense to marketing So, what will those people do? Basically, the money that they are spending on Facebook and Instagram at this time From there they will continue to increase his budget on TikTok by cutting that budget. The result of which will come out Which is the parent company of Instagram, is Meta their revenue figures will be shaken in a jiffy. On TikTok #TikTokMadeMeBuyIt the video with this hashtag has more than 16 billion views So technically, there is a very high chance that in the coming time TikTok will be eaten the entire market of social commerce TikTok is banned in India So, we do not see the worldwide impact of this application. But time changes There are very high chances That in the coming time, the ban may be removed and TikTok may come back to India. And you know what If this happens then it is possible that TikTok will badly disrupt the market of both Instagram reels and YouTube shorts. Because users, infrastructure and data are all these things TikTok has more than Instagram and YouTube shorts By the way, Remembered from TikTok Do you know that most of the music artists to get their songs popular they use TikTok videos and Instagram reels But the interesting thing is, That very few people know that these artists do not have a hand behind getting this done. Music labels The people who actually control the success of a song to a great extent But you know what Artists are getting so upset because of these music labels. that many artists are committing suicide Music industry is super dark And there are some such secrets hidden inside this industry which most of the people do not know.
Thank you
Credit: Aditya Saini
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