Monday, 05 December 2022 10:00 PM
TikTok will likely weather the slowdown in advertising, as the Chinese-owned social network giant becomes more disconnected from the wider industry slowdown.
According to GroupM, WPP’s media buying agency, a new report has been published. Tik TokIt doubled its advertising revenues in 2022.
“This is likely to be another driver of the advertising slowdown or ‘downturn’ observed in Meta and Snap as well as macroeconomic factors as we see less slowdown across other digital platforms where TikTok will be a less visible alternative (such as Microsoft),” the ReportHe said.
However, the report believes that while marketers may choose to view the platform as a good way to reach younger audiences who are becoming increasingly difficult to target with linear TV, there was a caveat that long-term strategies “will come with increased The platform risks being blocked in additional markets.”
TikTok is still banned in India despite having more than 1,000,000 users. It continues to be under scrutiny by the UK, US, and EU over its access to data from China.
GroupM revised its 2023 forecast of growth in total advertising spending from 0.5 percent to 5.9%
Paolo Pescatore, PP Foresight technical analysis, echoed this sentiment telling City AM [TikTok’s]Increasing dominance will only result in more interest from regulators and competition authorities.
He said that market penetration is unlikely to slow down anytime soon as market traders continue to keep an eye on market, which continues to be more focused on TikTok’s shorter-format content.
GroupM’s estimate is based on reports that TikTok lowered its global revenue targets for 2022 at least 20% in September, as it struggled to maintain momentum amid tightening ad spend and wider macroeconomic instability.
Previous statements by Victoria Scholar, Chief Investment Officer of Interactive Investor Am city While Facebook and TikTok were at odds for Generation Z’s attention in the past, TikTok has “overconfidence” which has led to a spending problem spiraling out of control.
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