As a result of the lockdowns caused by the pandemic, more people are interested in watching videos. There was a 120% yearly growth (YOY) in 2020’s video consumption. A quarter of U.S. customers have signed up for a paid streaming video service in the past year. 82 per cent of all consumer internet traffic this year, according to Cisco forecasts, will be video.
Based on findings from Wyzowl, nearly 90% of video marketers saw a favourable return on investment from their video content. It’s no surprise that 86% of companies are using video content to boost business. In particular, video makers have their sights set on the two most popular video-sharing websites of the present, TikTok and YouTube.
YouTube has been one of the most widely used social networking sites ever since its launch in 2005. As a result of the epidemic, 43% of YouTube viewers are logging in for longer periods of time than before. TikTok, on the other hand, isn’t afraid of a little healthy rivalry. With its condensed format and easily digestible material, it quickly became one of the most popular social media apps around the time of the pandemic.
Any video marketer would do well to utilise either TikTok or YouTube as their primary distribution channels. The success of your advertising effort may hinge on which one you choose. The question is, which one should you choose? We’ve laid out the similarities and contrasts between these two video-sharing giants so you can make an informed decision. Then we evaluated the finest choice for you this 2022.
About TikTok
TikTok is a video-sharing app where users may upload, view, and interact with short clips from other users. In 2017, the site was introduced as Musical.ly by the Chinese firm ByteDance. The original intent of the software was to create comedic videos using music and lip-syncing. Nonetheless, the site now hosts a variety of video-sharing features and a wealth of material spanning many fields.
TikTok is well-known for how easily users can create videos. From there, users may add a background, stickers, filters, and emojis to complete their creations. Even better, they can post it online and get feedback from others. There has been a recent uptick in the number of companies using TikTok to spread the word of their products and connect with a younger audience.
It’s no surprise that TikTok has exploded in popularity since its 2018 debut. The video-sharing app tripled in size during the course of three years. There have been over 2.6 billion downloads from 150 different countries. An additional user signs up once every eight seconds. TikTok has amassed $4.6 billion in revenue and one billion monthly active users before 2022.
TikTok’s primary function is video creation, but it also allows users to add music, collaborate on videos through duets, enhance their creations with filters and effects, and broadcast their work in real-time.
Who Uses TikTok?
TikTok is popular amongst young people. Almost half of all American TikTok users are under the age of 30. In 2018, there were more users on the site than on Instagram, which had previously been the most popular social media network among members of Generation Z. This segment of the population is not just highly connected via mobile devices but also hip to the newest developments. TikTok naturally attracts its own subset of young content makers and opinion leaders.
However, this does not rule out the possibility of an older demographic using the programme. Around 40% of TikTok users in the US are under the age of 30, while 11% are above the age of 50. Female users make up a somewhat larger portion of the platform’s total user base.
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User Spending
TikTok’s yearly revenue hit $2.3 billion in 2021, up 77% from the previous year. In doing so, it joined the ranks of the 16 non-game applications that have brought in over $1 billion in revenue.
The purchasing power of TikTok consumers is enormous. In addition to attracting a big number of young people, TikTok has also found that 14% of its audience is willing to increase their purchase price because of the platform’s involvement. In fact, over half of all TikTok users have admitted to making a purchase based on an ad they saw on the app. This is why #TikTokMadeMeBuyIt exploded in popularity in 2021.
Most watched videos
According to a poll conducted by GlobalWebIndex in 2022, the vast majority of TikTok users access the app in search of humorous and engaging videos. With 535 billion hashtag views in 2020, the entertainment category was far and away the most popular on the app. Five times as many as the next most popular genre, dance. Users of the video-sharing app TikTok also like to watch videos of pranks, sports, fitness, and DIY home improvement projects (DIY).
About YouTube
YouTube attracts more users than any other website. Less than 20 years ago, this service was created so that people could upload and share personal videos online. Within days of going up, the site was already receiving 30,000 unique visits on a daily basis. After being acquired by search engine giant Google, the site became what is now known as YouTube.
YouTube’s allure lies in its extensive and freely accessible video library. To the point that 78% of Internet users rely on it as their major video platform. Because of the breadth of available material on the platform, YouTube has become a real marketing option for companies of all stripes. There has been a massive influx of content makers and influencers onto the site because of this possibility for self-promotion.
The number of people who utilize YouTube has increased steadily over time. The site now receives over 1.7 billion monthly visitors and has over two billion active users. As a result of the epidemic, 43% of YouTube viewers are tuning in more frequently. At $8.6 billion, its global advertising revenues last year were up 25% year over year, bringing in a total of $28.8 billion for the year.
Among YouTube’s many features are suggested and trending videos, comments, sharing, liking, disliking, a subscription feed, channel analytics, and auto-playing playlists.
Who Uses YouTube?
Eighty-one per cent of adults in the United States have seen videos on YouTube. The platform has nearly universal penetration among internet users aged 18–49. Those three generations of shoppers represent a sizable market. This group is constantly connected to the internet, often using anywhere from two to three devices simultaneously. Younger generations (37%) are YouTube’s most avid viewers, with daily binge-watching constituting a significant portion of their time spent on the site.
Males make up a somewhat larger percentage of YouTube’s global user base. By a wide margin, India has more YouTube users than the United States does. The countries with the highest platform penetration are the Netherlands and South Korea.
User Spending
YouTube’s global lifetime consumer spend ranked third among non-gaming apps in 2021, and first among live streaming apps. The United States accounts for the lion’s share of total app sales worldwide.
Most Watched Videos
Do some lateral thinking with According to Google, the four most popular types of material on YouTube are comedic, musical, entertainment/pop culture, and instructional. As it turns out, T-Series, the largest music label in India, also has the most subscribers on YouTube. One of the most lucrative markets on the website is the gaming industry. By 2020, the platform had seen over 100 billion hours of gaming content seen by its users.
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YouTube vs. TikTok: How to Choose the Right Platform for You
HubSpot found that 65 percent of millennials would be interested in watching more videos from their favorite companies. TikTok and YouTube stars’ ability to make millions of dollars each year has lured creators from many fields to the platforms. Here’s how platforms like TikTok and YouTube are making video marketing more successful for businesses.
YouTube for Business
YouTube’s dominance in the video-sharing market has not been challenged despite the rapid growth of a number of competing sites. The social network provides an unrivalled revenue-sharing model. More than $15 billion was given to creators in 2017 according to the company’s policy of allocating 55% of its advertising revenue to creators. This is fantastic recognition for firms that have committed heavily to video marketing.
This helps explain why there’s been a surge in user-generated videos on YouTube. More than 40 per cent more YouTube channels made at least $10,000 in revenue in 2021 than in 2020. Creators are also taking advantage of the platform’s ad-free features, such as Super Chat and Channel Memberships.
YouTube has also unveiled Shorts, an answer to the popularity of TikTok. Alphabet CEO Sundar Pichai has stated that this alternate solution is attracting 15 billion daily views across the globe. The platform’s $100 million Shorts Fund has contributed to its success. Now accessible in over a hundred countries, this programme seeks to recognise and reward innovative YouTubers and their Shorts.
YouTube is looking at product placements, an income stream that rival TikTok is already utilising successfully. Live commerce is on the rise, and brands can now incorporate a product feed into their video marketing strategy. Ninety per cent of users find new products on YouTube, and because YouTube clips are linked to Google, this presents a significant opportunity for advertising on the platform.
Companies like Google, Red Bull, Evian, Volvo, and PlayStation are just a few of the many that utilise YouTube to promote their products.
The Benefits of Advertising Your Business on YouTube
Massive Reach and Engagement
There’s no questioning YouTube’s massive user base. Everyone from young adults to retirees can find something interesting on the platform. In fact, YouTube is used by 95% of the world’s internet population to watch videos every day. In addition, 25% of all mobile traffic is generated by YouTube.
The social media platform boasts five billion daily video views and one billion daily video hours thanks to its two billion monthly active members. In just a few seconds, video advertisements can help you connect with and attract the ideal viewers.
Cost-Effective Advertising
YouTube may be worth a billion dollars, but it’s not out of reach for local businesses. Ads on the platform typically cost between $0.0010 and $0.0030 per view. However, the typical expenditure to reach 100,000 viewers is $2,000. Even if a viewer only watches for five seconds, YouTube will still count that view toward your total.
The platform operates on a cost-per-click basis, so you may determine in advance how much you are willing to spend on individual clicks. The software is quick to produce results and offers simple indicators for evaluation. Simply navigate to the Analytics section of your account to view the results of your campaign.
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Targeted Audience
On YouTube, people often look for certain videos. So, you can zero in on the exact people you wish to communicate with. You can tailor material to a particular audience, clientele, or even a person’s current life circumstances. You’ll have a better possibility of turning visitors into buyers.
TikTok for Business
One-fourth of marketing professionals say TikTok helps them achieve their professional objectives. Simply put, the software offers a goldmine of possibilities. The platform hosts a growing number of communities and a brand-new advertising format. Also, because traditional advertising is so ineffective, companies are under increasing pressure to provide new, interesting, and entertaining material that will appeal to TikTok’s young user base.
Also, the app’s limited functionality as a source of fun has been established. The #crypto hashtag on TikTok generated nearly two billion views in 2017, contributing to a 255% increase in Finance-related content last year. This demonstrates that any subset of the market or sector at large can successfully establish a presence within the video-sharing app.
Add, TikTok is a leading app that encourages users to make purchases. The number of items purchased by its customers increased by 77% in the previous year. Surprisingly, TikTok has influenced the purchasing habits of more than two-thirds of its users who were not originally intended to make a purchase. Brands’ eagerness to place ads on the platform, despite its novelty, is therefore not surprising.
To accommodate the growing number of content creators who are looking to increase their earnings, TikTok is exploring alternatives to its traditional model of using in-stream advertisements to pay its operations. Creator videos on the social media platform are monetized mostly through product advertising. For lack of a more steady income stream, brands on the platform have turned to methods such as brand alliances.
Brands including NYX Professional Makeup, Tinder, Fortnite, and Mountain Dew have all benefited from advertising on TikTok.
The Benefits of Advertising Your Business on TikTok
Diverse and Active Demographic
Since millennials, Gen Xers, and baby boomers make up more than half of TikTok’s demographic, it is safe to assume that the majority of its users are members of Generation Z (41%). Of course, if you want to reach the highest possible ROI from your Facebook ads, targeting millennials is still the best bet. Still, this is a great chance to connect with people of all ages and demographics.
TikTok has never seen such high levels of activity from users of all ages as they do right now. The number of users in the United States increased 5.5% in less than 18 months. People that use TikTok do so on a daily basis, and they spend an average of 52 minutes per day there. More visibility and a more than the worthwhile return on advertising investment is what this means for brands.
International Audience
More than 100 nations and 75 languages can access TikTok. Because of these factors, TikTok is a great place to connect with people all around the world. When the entire world was forced to stay inside in 2020 because of a coronavirus outbreak, people all across the world were looking for comedic short videos to pass the time.
Demand for video content will not decrease anytime soon, even while the rest of the world slowly rebuilds itself. This is especially true as more and more people make their purchases online. Currently, advertising on TikTok is effective because of the platform’s prominence in influencing consumers’ decisions.
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International Audience
Many tools exist to help you launch a successful advertising campaign on TikTok. Ads can be shown in a number of different ways within the app. Among these is In-Feed, which is the only self-serve format that is open to all marketers. But there are also various ad creatives to help you generate more dynamic content. Selecting the right ones can have a direct impact on how involved the audience becomes.
Trend Incubator
Having a catchy tune and memorable visuals helps make videos popular on TikTok. The usage of sound on TikTok encourages users to keep watching videos after videos after videos after videos after videos after videos after videos after videos.
To increase your content’s visibility and fan base on the platform, try weaving in some current fads. Branded hashtags encourage audience participation in a campaign by inspiring them to produce content centered on your hashtag.
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