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There’s no way they could generate similar revenue per user. Revenue per user depends on much advertisers are willing to pay and there are a couple of differenc
by zippy5 6y ago
There’s no way they could generate similar revenue per user. Revenue per user depends on much advertisers are willing to pay and there are a couple of differences:
1) Targeting: Instagram has exceptional ad targeting because it utilizes facebook’s existing data which TikTok tool doesn’t have.
2) Online spending: In theory wealthier countries / demographics should have higher online spending. May also have correlations with gender, age, employment status, number of digital devices, delivery infrastructure, etc.
3) Advertiser relationships: the real customers have to want to put their stuff next to your content.
4) Political risk: if many countries ban it, it’ll lose access to a lot of high value markets.
Lastly, profitability doesn’t always come later particularly for high bandwidth applications. Personally I’ve been getting a higher number of ads from YouTube but they are exceptionally poorly targeted (I skip at-least 90%). I would expect google to have as much data as anyone. The only explanation I have is that it’s simply too expensive to produce video ads to have an efficient targeted ad market.
- askafriend 6y ago> There’s no way they could generate similar revenue per user. I'll take the opposite side of this bet any time. TikTok will become a juggernaut on par with Instagram and perhaps even surpassing it.