ByteDance-owned TikTok is targeting ₹100 crore revenue in India for the July-September quarter this fiscal, Etrackr reported on Tuesday. According to the report, the Chinese video app earned revenue of ₹23-25 crore in the last quarter, which ended on December 31, 2019.
The brand is banking on its new ad formats to churn more ad revenue this year as brands, especially FMCG brands, have been bullish on these ad formats as compared to traditional ad formats.
Different ad formats
TikTok provides multiple ad formats for brands, including in-feed videos, branded effects such as AR filers and branded lens, hashtag challenges, etc.
Branded effects and Hashtag Challenge have been the most effective ad formats on the platform so far according to the report.
Popular FMCG brands, including Pepsi, Lay’s Britannia and Oreo, have leveraged the platform to reach out to consumers, according to a report in the Financial Express. Apart from FMCG brands, OYO, Paytm, Snapdeal and ClubFactory are also leveraging Tiktok’s unique ad formats, Entrackr reported.
Taking on Facebook
With over 200 million users, India has been a huge market for the short-video app over the last year. TikTok had clocked over 60 million installs in September 2019, becoming the most downloaded social media app worldwide. India had topped the list with 44 per cent of downloads according to previous reports.
As for TikTok taking on Facebook and its social media platforms in terms of revenue, it’s not going to happen anytime soon — TikTok’s ₹25 cr revenue is still marginal compared to Facebook. According to Facebook’s regulatory filings, the social media giant saw 71 per cent growth in the Indian market, with ₹892 cr revenue in financial year 2018-2019. Facebook’s advertising reseller business segment revenue had amounted to ₹263 crore for the financial year 2019, according to an Economic Times report.
Facebook was also the second most installed social media app worldwide after TikTok, with more than 50.5 million installs out of which 23 per cent were recorded from India.
Source: The Hindu
