TikTok’s advertising revenue is predicted to have doubled in the past year according to a report from media agency GroupM.
The report, which analyses media trends from 2022 and predicts them for 2023, has also found that TikTok’s social media rivals have experienced decreasing demand from advertisers this year.
According to GroupM, the social platform’s success has directly affected brand and agency demand for companies like Snap and Meta. Microsoft, however, which is considered to be less of a direct competitor for TikTok, has not witnessed such a notable drop in ad revenue.
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The report also said that Twitter “remains an open question for many marketers because of the erratic product updates at the company and mercurial nature of new owner Elon Musk”. Many brands and agencies have pulled their marketing activity from the app as the industry begins to question the platform as a reliable ad space. GroupM claims that Twitter does however represent a small section of the ‘digital advertising ecosystem’. The app represented just 1.2% of all global digital ad revenue in 2021, excluding China.
The media agency predicts overall global advertising growth of 6.5% this year, 1.9% less that GroupM’s June forecast of 8.4%. The company puts the downgrade down to the economic situation in China.
Next year, the firm expects global advertising growth of 5.9%.
