Insider Intelligence predicts that global ad spending will increase 10.5% year on year to $626.86 billion in 2023, up from $567.49 billion in 2018. The figure is expected to soar to $835.82 billion by 2026.
The competition in the ad market is fierce, and marketers keep on exploring and experimenting.
TikTok has quickly started to move out of the “experimental” bucket and is now becoming a staple of the social media mix.
The quick emergence of TikTok caused rivals like Meta and Google to launch their own short-form video offerings such as Instagram’s Reels and YouTube’s Shorts.
TikTok is rapidly becoming a major focus in many advertisers' media plans. Marketers are evidently shifting their digital ad spend from other social media platforms like Meta, Google, and Twitter to TikTok.
However, when compared to the amount of data insights provided to advertisers by competitors such as Google, TikTok's ad capabilities fell short of those of its larger and older rivals. There is still a lot of room for improvements.
On the other hand, this short-form social media platform has also been sparking the attention of global regulators due to security concerns.
It remains to be seen what TikTok will do to overcome the analytical shortcomings and bring security concerns under control.
But, overall, TikTok has well established its efficacy in recent years. Undoubtedly, it has grown from a nice-to have to a have-to-have platform for marketers to promote their services, grow their audience, and increase their ROI through targeted ad campaigns.