Digital ad-spend growth was expected to decline due to economic uncertainty TikTok is a bright spot in the digital realm.
According to a report from WARC Media, global ad revenue on the platform is expected to exceed 15 billion dollars in the next five years. The report predicted that TikTok's ad revenue will "defy the trend" of the larger market slowdown and continue growing after two years of upward momentum.
The revenue estimate is an increase from the previous year.
"TikTok plays a growing role in culture around the globe," Alex Brownsell said in a statement. It has a potential ad reach of over one billion, with 409.1 million users ages 18 to 24. It was the most downloaded app for three years in a row.
In order to provide marketers with evidence-based insights on the challenges and opportunities the platform offers at a time when media costs are increasing and media models are shifting, we took a closer look at TikTok.
Companies are expected to spend more on TikTok in the years to come. Technology and electronics will see the biggest boost of $2 billion. The pharma and healthcare industry will see a modest gain of about $400 million in the next four years.
More pharma companies joined TikTok over the last year. The goal is to use the opportunities it presents to connect with younger people.
A variety of medical conditions can be found in the educational videos published by the company. The TikTok debut of Amgen has amassed more than 3,100 followers.
TikTok's growing power in the healthcare world extends beyond marketing, with increasing numbers of young people turning to the platform to seek information on a range of medical conditions and health related issues. Hall & Partners found that 18% of the U.S. population are turning to social media for healthcare information.
Political wrangling over the company's ownership could affect TikTok's growth in ad revenue and influence. The U.S. would ban the app if ByteDance didn't sell it.
A group of TikTok creators are going to Washington, DC, next week to lobby against the forced sale of the company.