What is TikTok? TikTok (called Douyin in Chinese) is a video-sharing platform that lets users create and post videos up to 15 seconds long. TikTok has easy-to-use tools to add music and special effects, such as dazzling filters and superimposed stickers. TikTok was launched in 2016 by Beijing-based ByteDance, which secured a new round of funding led by major tech investor SoftBank late last year that valued the company that owns TikTok at $75 billion.

How Popular is TikTok?

TikTok had more than 500 million monthly active users as of June 2018. According to mobile research firm Sensor Tower, TikTok was the fourth most downloaded non-game app in the world in 2018 – and has been downloaded around 80 million times in the US. The company added it had around 120 million active monthly users in India as of April 2019.

TikTok is for the young: Over 40% of users were aged 24-30 years as of June 2018, according to the company. Users spend an average of 52 minutes per day on the app, according to venture capital firm Kleiner Perkins.

What Are TikTok’s USPs?

The most important consideration for any video platform is the relationship between content creator and audience. Just as anyone can create and post videos to YouTube, but only a relative handful create consistent content that is engaging enough to attract steady followers, so too can any TikTok user create and post content – but only a relative handful have attracted regular audiences.

And, TikTok has many features that make it great at connecting users via communities built around specific niches, such as gaming or comedy. TikTok also provides tools to help users locate communities – or create one of their own – such as using hashtags, a duet feature, challenges and AI algorithms.

Hashtags: TikTok uses hashtags to make it easy for people interested in a specific topic to connect. For example,  US rap star Lil Nas X’s “Old Town Road” hit was promoted using “#yeehaw,” a bevvy of take-offs ensued, all using the same hashtag – and resulting in 67 million plays and massive social media buzz for the song, which now sits at number one on Billboard’s Top 100 chart. Duet: The Duet feature lets users create a split screen with a video of a celebrity or friend. For example, two friends can create a video of them dancing “together” using the split-screen feature – or use a celebrity video. [caption id="attachment_91617" align="aligncenter" width="616"] Dance Duet on TikTok
Source: Stufftaiwan [/caption]   Challenges: For challenges, users make videos challenging others to do the same thing. For example, one user posted a finger dance challenge, demonstrating a complex finger dance and challenging other users to do the same thing. Challenges are an easy way to engage users and draw them into the community. 1. Michael Kors was the first luxury brand to leverage the challenge feature on Douyin with the “City Catwalk” hashtag, which asked users to post 15-second videos of people walking a catwalk with the brand’s products. The campaign, which included Chinese celebrities Yang Mi and Mark Chao and three Douyin key opinion leaders, attracted about 30,000 users. [caption id="attachment_91618" align="aligncenter" width="700"] Michael Kors’ #City Catwalk challenge on Douyin
Source: Sekkei Studio [/caption] 2. Guess ran a hashtag challenge using #InMyDenim in which users posted videos wearing Guess apparel. Videos associated with the #InMyDenim challenge have been viewed more than 36 million times. [caption id="attachment_91619" align="aligncenter" width="259"] Guess’#InMyDenim Challenge on TikTok
Source: Sociallyin [/caption]   TikTok makes it easy for users to locate videos on its platform: The search and explore page at the bottom of the screen lists video categories, including popular hashtags, featured creators, viral sounds and challenges. [caption id="attachment_91620" align="aligncenter" width="533"] TikTok’s search and explore page (left), and For You page(right)
Source: Coresight Research/TikTok [/caption]   TikTok also uses advanced AI algorithms that learn user preferences, then provide customized feeds through the “For You” recommendation page. What Douyin Offers Brands The Chinese version of TikTok, Douyin, works with brands via splash ads, newsfeed ads, brand-sponsored stickers and key opinion leaders (KOLs) for the China market. Douyin offers splash ads that can cost up to ¥1 million (about $150,000) for one day. Splash ads are full-screen advertisements displayed before the app is opened. It can be a still image or video. [caption id="attachment_91621" align="aligncenter" width="203"] Full-screen ad in TikTok when app is first opened
Source: Techcrunch [/caption]   Douyin also offers newsfeed ads for ¥30 (about $4) per click. The feature allows brands to incorporate promotions into newsfeeds. Douyin also facilitates campaigns such as Pizza Hut’s promotion of its new Wow BBQ Black Pizza by providing themed sunglasses stickers with the iconic red hat – attracting over one million views. [caption id="attachment_91622" align="aligncenter" width="700"] Pizza Hut’s theme sunglasses
Source: Sohu [/caption] KOLs on Douyin are another option for brands to promote their products: They already have huge followings and people take their advice – more so in China than in other markets. KOLs in China charge from ¥6,000 (around $867) to ¥100,000 (around $14,443) to promote a product, depending on the number of fans. How Can Brands Leverage Douyin? Douyin has already launched initiatives to help brands to leverage its traffic in China: Corporate official accounts: Brands can create their own official accounts on Douyin, and Douyin has a verification plan to validate accredited corporate accounts called Blue V. Douyin also offers marketing and data management services to Blue V-accredited brands. Adidas Neo: Adidas’ brand Adidas Neo opened an account on Douyin in January 2018. Showing videos of people having fun wearing Adidas Neo products, the account attracted 1.2 million followers and 2.8 million interactions in its first month, according to Douyin. [caption id="attachment_91623" align="aligncenter" width="700"] Adidas Neo’s campaign on Douyin
Source: Walkthechat [/caption] Christian Dior: Since its launch in April 2018, Christian Dior has attracted approximately 282,700 followers and received over 1.3 million “hearts” on its Douyin posts. The company posted 114 videos with 10 hashtags as of January 2019, according to Jing Daily. [caption id="attachment_91624" align="aligncenter" width="700"] Christian Dior’s official account on Douyin
Source: JingDaily [/caption]   E-Commerce: Douyin also includes an e-commerce function to help brands better leverage site traffic. For instance, the Christian Dior store on Douyin let users place orders without leaving the app. [caption id="attachment_91625" align="aligncenter" width="305"] Christian Dior’s store on Douyin embedded in its official account
Source: Sohu [/caption]   In Chanel’s advertising campaign for its J12 watch collection in July 2018, the company’s Douyin account included purchase links embedded in the videos. [caption id="attachment_91626" align="aligncenter" width="700"] Chanel’s J12 2atch campaign on Douyin
Source: JingDaily [/caption]   Key Insights Short video platform TikTok and its Chinese version Douyin have launched creative features that can help to engage users, such as challenges and duets. Brands can leverage the app to create entertaining and engaging videos to promote their products.