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The reason why TikTok-operated “ByteDance” is “overwhelming” in online advertising. Details of the too novel technique
ByteDance accounted for 45.7% of China's online advertising market share in the first half of 2021. With the popularity of the short movie posting app “Dowin” and its international version “TikTok,” the company’s presence is increasing worldwide. The source of the strength of Douyin and TikTok lies in the huge number of users, but even in the world of online advertising, they are innovative enough to make traditional search ads and banner ads a thing of the past. Many of Douyin's advertisements are of a quality that looks like they were shot by an amateur with a smartphone, and advertising professionals tend to underestimate them. However, this seemingly amateur quality advertisement continues to overturn the common sense of the industry. What are the three changes brought to the advertising system of Douyin and the industry?
IT journalist Takefumi Makino
IT journalist Takefumi Makino
Published articles discussing IT technology from the perspective of consumer business in various media. In recent years, he has been paying attention to Chinese IT technology. His publications include "Google's True Identity" (My Comi Shinsho) and "Nintendo Nostalgia" (Kadokawa Shinsho).
"Short movies" top China's Internet advertising revenue
Discovered by A/B tests, etc., characteristics of short movie ads
Reasons for high "favorability" from consumers
Online advertising in China 's main battlefield has completely shifted. According to the “2021 Internet Advertising Market Half-Year Report” (QuestMobile), the ranking of advertising revenue by media was short movies, news media, SNS, OTV (video streaming + live distribution = Online TV), and search advertising. . Five years ago in China, search advertising for Baidu, which has the same business model as Google, was strong, and the word BAT (Baidu, Alibaba, Tencent) was used to describe Chinese tech giants. However, with the shrinking of the search advertising market, this word gradually disappeared, and the words HAT (Huawei, Alibaba, Tencent) and ATM (Alibaba, Tencent, Meituan (Mate One) or Xiaomi) are used. It's becoming Baidu's presence in the online advertising market is waning, and Byte Dance has made a name for itself. Founded in 2012, ByteDance, with its AI-based recommendation system as its core technology, has succeeded in the news curation media “Today’s Head Article” and the short movie media “Douyin”. It also succeeded in expanding overseas with “TikTok”. These products are overwhelmingly supported by users, but they also have overwhelming advertising revenue. In the ranking of online advertising revenue share by platform, Douyin and Kyoutojo are ranked first and second, with a combined share of 45.7%. ByteDance alone makes nearly half of China's online advertising revenue. ByteDance was unlisted, so its financial status was not disclosed, but in June 2021, it released its financial status for 2020. According to it, operating revenue was 236.6 billion yuan (about 4 trillion yen), twice that of Baidu and half that of Tencent and Alibaba. In just nine years, ByteDance has grown into China's leading tech company. Related articles
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In Japan, there is no way to see Douyin directly (the international version of TikTok is installed), so it may be difficult to convey (see Douyin advertisement examples later), but if you think about conventional advertisements, especially TV commercials , I think you will be quite surprised. It's as if an amateur just took a picture with a smartphone. There are almost no commercials that are created and produced with a high-class feeling like TV commercials. For example, advertisements for daily goods simply introduce the convenience of those goods. The narration is clearly an amateur, and it feels like it was hand-made by someone who had free time at the sales company. In fruit advertisements, farmers in the production area appear and explain the deliciousness of the fruit and how to grow it in a strong dialect of Chinese. The advertisements for the iPhone are not from Apple, but from retailers and e-commerce companies that carry them, so there is no sophisticated image at all, and it is simply appealing that it is cheaper and faster to get than others. What made me think the most was the advertisement for frozen grilled xiao long bao. A man and a woman who seem to be employees just make and eat xiaolongbao without explaining the product. However, just looking at it makes me hungry and makes me want to order it. Rather than a video advertisement, it feels more like a video of how people were invited and demonstrated in stores long ago. From the point of view of an advertising production professional, I think Douyin's advertisements look rather crude. However, in terms of conversion (purchase conversion rate), it has an overwhelming effect. What is this all about? [Next page] ``Three changes'' brought about by ByteDance online advertising
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