Can the Tech Giants Successfully Copy TikTok?
TikTok's U.S. user numbers are exploding, and its ad revenue isn't too far behind. Between October and March, unique visitors to TikTok's website nearly doubled, while app users grew by 55%, according to data from Comscore. And the average time spent is growing quickly as well, with app users now spending around half an hour per day watching infectious videos. Parent company ByteDance expects the app to generate about $500 million in U.S. ad revenue this year, according to a report from The Information.
So, it's no surprise digital advertising giants Facebook (NASDAQ: FB) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google want in on the action. Facebook has been working on a TikTok clone for years now, with products within Facebook and its Instagram subsidiary. Google's YouTube is just getting started in its efforts, testing 15-second multisegment video recording in its app.
While $500 million in ad revenue is only a tiny fraction of Google's and Facebook's respective sales, the growing amount of time spent on TikTok looms large over the tech giants. Managing similar levels of engagement for their TikTok clones is as much defense as it is offense
Source Fool.com
