TikTok increased the revenue by 423%

The spread of coronavirus suspends the activities of many companies and entire sectors of the economy around the world. But if for some of them, self-isolation and quarantine measures are akin to confinement, for the others it is a way to increase their popularity and monetize the business.  This is precisely the situation that has developed around the TikTok mobile application, which is ready to conquer the new markets.

Recently, it became known that the authors of TikTok are seriously thinking about creating their own TV shows. They will help to attract adult audience to the service that has recently been steadily associated with teenagers (so-called “Generation Z”).  The service, as it is known, belongs to the Chinese corporation ByteDance.  According to the latest data, in three years, the number of TikTok downloads to mobile devices has exceeded 2 billion.

In fact, over the last few years, the company managed to bypass many technological projects in popularity, having become the most successful startup.

In China, the application is called Douyin.  The ability to create and edit your own 15-second videos with your favorite music and share them with users made the service extremely popular among Chinese youngsters.  However, the application, launched in 2016, has now outgrown its original audience, according to the experts. In the fight with the Chinese corporation Tencent (the owner of WeChat service) in the entertainment market, ByteDance successfully used a situation, in which a significant part of the population was locked up in four walls.

The entertaining content of the videos that users post on TikTok became the secret of its success. It helps to distract people from the gloomy news and negative thoughts about the economic consequences and isolation measures, taken in the society.

As a result, millions of users rushed to download the application.  This was done not only by the citizens of the Celestial Empire, but also by residents of the USA and European countries.

TikTok management has successfully seized the moment by suggesting funny hashtags (for example, #HappyAtHome) urging young users to engage their parents in the creation of the videos. In the first three months of 2020, the TikTok application was downloaded 315 million times.  According to the experts of the Sensor Tower company, this is an absolute quarterly record for all mobile applications.  Thus, the service managed to double the number of downloads in just 15 months.

The company is actively trying to attract the users with a large number of followers on Instagram and YouTube.

According to the experts, in the first three months of 2020, the ByteDance Corporation earned about $ 157 million only on mobile applications.

It was a record amount of revenue for a quarter - an increase of 423% to compare with the same period of the last year.

The success of TikTok puts it on a par with the leading entertainment companies in the world. Now the service is trying to gain the trust of advertisers by “sacrificing” advertising opportunities for medical organizations that publish information about the development of the pandemic.  The company plans to offer more free advertising time and space for the restaurants and small businesses as soon as such enterprises resume their work.