TikTok’s Golden Opportunity
With Facebook beset by Apple’s tracking crackdown, TikTok can capitalize. But will it?
Big Technology is a weekly newsletter dedicated to covering the tech world with honest, nuanced reporting. Join the 13,000+ subscribers who tune into Big Technology for tech news without the spin. Here’s an easy way to subscribe:
Marshall Maher just wants TikTok to take his money. The chief marketing officer at ServiceUp, a car repair startup, spends $40,000 to $80,000 on ads each month, and he’s tired of giving it to Facebook. Maher doesn’t trust the social network after years of its error-filled reporting, especially now that Apple severed its ability to track people outside its app. He’s looking at TikTok to take its place.
“Facebook and Instagram are becoming very inefficient for us,” Maher said. “We need to do something else.”
TikTok today has a golden opportunity to take market share from Facebook, the kind that doesn’t come around too often. After Apple effectively broke Facebook’s ad system by cutting off crucial tracking capabilities — the social network’s measurement can now be off by as much as 60%, per some marketers — people like Maher are looking for alternatives. TikTok, with its massive, engaged userbase, can sometimes be all they can talk about.
“This is 100% TikTok’s moment to scale,” said Sara Livingston, head of customer solutions at Rockerbox, a marketing analytics company. Facebook’s travails may lead more marketers to test budgets with TikTok, she said, and if their ads prove effective, they won’t stop spending. “Once they get in and establish a baseline of spend, it’s about a growing that. And it's really hard to get unseated.”
For TikTok, winning over Facebook advertisers won’t be easy, particularly because of its own faults. The company is competing with a Facebook ad platform that is intuitive, easy, and efficient to use. And though TikTok has hired an army of ex-Facebook employees to bring its system up to par, it’s just not there. “What on Facebook would take me 15 minutes on TikTok would probably take me 45 minutes,” said Dylan Carpenter, founder of Koality Media, a digital marketing agency. “That's a lot of extra time.”
Then there’s the creative side, which has its own learning curve. On Facebook, an ad with a single image or link can be effective. On TikTok, which is filled with short-form videos, a static image won’t suffice. To advertise effectively on TikTok, advertisers must learn the platform’s language and embrace its weirdness. The task can be daunting.
“There’s a whole lot of people like me who are looking at TikTok like a black box,” Maher said, “And just figuring out like, ‘What the hell am I gonna do with this?’”
Maher is the type of advertiser — online, savvy, with a midsized budget — that’s propelled Facebook to more than $111 billion in revenue last year. TikTok has the chance to win him over and keep him, but it will take some work. Facebook, meanwhile, is working diligently to rebuild its platform and measurement, so TikTok’s window is limited. It will need to act soon to capitalize.
Maher, for his part, now expects to spend more time looking into TikTok’s offering. He has an idea for where to start: “Literally Google ‘How to advertise on TikTok.’”
Together With Meow
Did you know there’s a company called Meow that lets corporations and institutions earn up to 4% APY on their cash? Compare that with 0.25% at a bank, if you’re lucky.
How does it work? Sign up (it takes less than 5 minutes and it’s completely free), deposit your cash and Meow earns yield for you daily and your funds are completely liquid - you can withdraw in 1-3 business days. Meow is backed by the best: Coinbase, Lux Capital, Jump Capital, and many others.
Limited offer: Meow offers Big Technology readers up to 5% APY by saying Big Technology referred you and signing up this month. Make your first deposit today!
What Else I’m Reading
Is the iPhone SE all we need? Amazon’s lobbying strategy isn't working. Apple’s Studio Display is a disappointment. NFTs are coming to Instagram. Bitcoin mining replaces coal in Kentucky. What happened to Tony Hsieh. Substack vs. its writers. The S&P 500 performs a death cross. Vimeo is shaking down creators. Inside the battle of Voznesensk. YouTube watchers think they can land a plane.
Number Of The Week
The average NFT price dropped by almost half since the peak last November
Quote Of The Week
"Eye contact, when you’re in person, is one of the most important parts of that experience.”
— Mark Zuckerberg on building real-world experiences into the metaverse
Advertise with Big Technology?
Advertising with Big Technology gets your product, service, or cause in front of the tech world’s top decision-makers. To reach this group of 12,000+ plugged-in tech insiders, please reply to this email.
This Week On Big Technology Podcast: How Apple Upended Digital Advertising — With Orchid Bertelsen and David Herrmann
Orchid Bertelsen and David Herrmann are two senior advertising professionals who’ve watched Apple’s anti-tracking changes upend the industry in real-time. They join Big Technology Podcast to discuss how what Apple’s “ask not to track” notification actually works, how it’s changed the way advertisers do business, how small businesses have felt the impact, and which platforms it's empowered at Facebook’s expense. Stay tuned for the second half where we discuss how Apple, TikTok, and Amazon’s businesses have changed thanks to this massive, underrated power move.
Thanks again for reading. Please share Big Technology if you like it! Also, click the heart on this thing now that you’ve read till the end :)
Questions? Email me by responding to this email, or by writing firstname.lastname@example.org
News tips? Find me on Signal at 516-695-8680
See you next Thursday!