What ByteDance does:
ByteDance was established in 2012 by Zhang Yiming. It is among the world’s best mobile apps that provide valuable entertainment. They came in front by hitting head-to-head the other Chinese apps like Alibaba, Baidu, and Tencent.
This time ByteDance’s current apps are TikTok, Helo (an Indian social media app), Vigo Video (formerly Hypstar), Douyin (the Chinese version of TikTok), BaBe (an Indonesian news and content app), and Huoshan (a Chinese short-form video app.
Toutiao or Jinri Toutio is one of the famous news collectors from the internet from different sites in China. It also has its first product the AI-powered Toutiao. As per the reports at the end of November 2018, more than 240 million people installed the app.
There is another app, Neihan Dianzi — the site where people share jokes via videos, memes, and text was shut down by the Chinese censors in 2018. ByteDance is also supported by some of the strongest hitters in experienced capital funding, including SoftBank and Sequoia Capital.
Why it matters
Chinese tech companies like ByteDance and its counterparts— Alibaba, Baidu, and Tencent, are working in the whole world and have the second-largest economy that is working without any competition from global platforms such as Google, Facebook, and Amazon.
ByteDance is one of the biggest companies that has a valuation of 78$ billion and produces more than $7 billion in revenue in more than half a year. Baidu has a market cap of $36.6 billion Alibaba’s market cap is $458.7 billion and Tencent has a market cap of $3384.4 billion. Google’s market cap, by contrast, is $874.5 billion, but they are struggling to start a business in China.
Bytedance is evidence for the popularity of TikTok. They are among the top businesses that are working in the consumer apps in China on social commerce on mobile But now these companies are outside the country and performing well.
This month news was spread that Google has bought another shot form video app called Firework after checking the popularity of another short video app TikTok in the whole world.
Most of the tech platforms make their money from advertisements and ByteDance is also making its money from these ads.
Why everyone is so focused on TikTok
TikTok, famous as Douyin in China, was established in the U.S. in 2018 after ByteDance combined it with another purchase, Musical.ly. The short-form video app has since skyrocketed thanks to an influx of brands like Ralph Lauren and Chipotle, as well as publishers like Complex and Vice, who have flocked to the platform.
Before Snapchat, TikTok was also popular among young people. According to the news from a leaked ad pitch deck from June 2019, the majority of TikTok users (69%) are from Generation Z (ages 16 to 24), while 25% are age 25 and older. Most users are also female (60%). In the U.S., TikTok has more than 30 million monthly active users who are spending most of their time on the app. Monthly users on the app from all over the world are 800 million, with 500 million based in China.
The app is among the most downloaded apps as they have seen a drop of 4% in their download from all over the world which has a download of 177 million just behind WhatsApp which has a download of 183 million.
ByteDnace has to spread it to US ads teams so they can name a demand with the people mentioned by the media buyers of Dgiday in the last week. Now they need more active advertiser users.
ByteDance Media Reports:
As per the news some of the media buyers are starting to run ads on Titok. David Hernamm, president of Herrmann Digital, has mentioned that ads are performing differently from the ads on the different platforms that are mature such as Snapchat. On Snapchat, it is a conversion play and it is not a direct response now. He also mentioned that “I think [Snapchat and TikTok] can coexist wholeheartedly. I think TikTok is definitely a player, but they still have a long way to go.”
This time Tiktok is a beta-testing creator app that allows brand agencies and marketers to connect with people. They will be content with those who have millions of followers they can influence the people and they can advertise your products for you.
There is no way for the publishers to make money from these platforms for making the videos. Some of the publishers like The Washington Post and Hearst Magazines are testing out the platform.
What’s next for ByteDance
Eventual IPO or not, ByteDance is concentrated on worldly growth, significantly in the U.S. This company has an aggressive hiring spree and they are focusing on hiring companies like Snapchat and Facebook.
ByteDnace is also looking for more products and reach. CNBC in a report has mentioned that this year they may increase the hardware of education. Other media reports have mentioned that they may increase it to the music stream or even develop a smartphone.