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TikTok Shop targets $20 billion in sales After a global slowdown in advertising sales
According to Bloomberg, TikTok owner ByteDance plans to quadruple its e-commerce business to $20 billion in the US and Europe. After growing exponentially in Southeast Asia
TikTok has the highest spending on the App Store in the US. UK, France, Germany and Indonesia in the first quarter of 2023, according to data from Data.ai In addition to helping advertisers reach a large audience on the world’s most time-consuming social apps. It also helps the consumer base that tends to spend more. This can result in a high purchase rate.
The TikTok Shop displays ads to users on the app while scrolling through an endless feed of short video clips and live streams. A business model that combines entertainment with impulse buying has helped Douyin (TikTok in China) grow into a major e-commerce player in China, competing with Amazon and Shopee, which it hopes to replicate in the US.
Revenue from TikTok’s advertising business, which used to be the main source of income in the past. The decline was reported due to a slowdown in global ad sales. So the app focuses on online e-commerce business. worth 17 trillion dollars be the main revenue driver instead
However, TikTok is still fighting the US ban. Although there are 150 million users in the US. as well as implementing the introduction of a range of security measures to address national security concerns. It gives partners like Oracle Corp. the right to audit technology and prevent data leaks. but now the president Joe-Biden has yet to make a final decision.
Bloomberg
Source
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