Tiktok: The most valuable start-up in the world and hardly anyone knows it – Social Media & Online Marketing 2020

🌐 Have you ever heard of TikTok? Well, I didn't have it either and yet the mobile app Doyin in China topped the app charts in many parts of the world last year. Douyin is the Chinese version of TikTok, also owned by ByteDance but tailored specifically for the Chinese market.

Since its launch, TikTok has become one of the most dominant social media platforms worldwide and has a high user base in many countries. The popularity of the app can be explained not only by its user-friendly interface and innovative features, but also by the global trend towards digitalization and the growing popularity of short videos as an entertainment format. In this article, we will look at the factors that contributed to TikTok's success, as well as the challenges and opportunities the platform faces in different markets.

1. 🎬 The origins of TikTok and the short video phenomenon

TikTok, formerly known as Musical.ly, is a popular video-sharing app that was purchased by Chinese company ByteDance. Introduced as Douyin in China. The international version TikTok was launched in 2017, which became a global sensation within just a few years. The central component of TikTok is the short video format, which allows users to create videos from a few seconds to a maximum of three minutes. This short, easy-to-consume content hits the nerve of today's online generation, which is characterized by short attention spans and is constantly looking for new, quickly digestible content.

The app's Chinese ownership is now coming under fire from the Indian government as TikTok landed on a list of dozens of Chinese apps banned in the country due to threats to national security.

This hits TikTok in a critical market: App analytics firm Priori Data shows that TikTok has been downloaded nearly 100 million times in India so far in 2020 - the most out of 55 countries available on the Priori Data platform.

ByteDance also made headlines in November last year for being the subject of a national security review in the United States. The investigation is said to focus primarily on suspicions of censorship and the collection of user data.

2. 📈 Why TikTok is so successful

One of TikTok's greatest strengths is its algorithm, which curates content based on individual usage behavior. This algorithm is designed to quickly identify what type of content a user prefers and then suggest similar videos. This ensures a continuous flow of relevant and engaging videos that bind users to the platform and entice them to return again and again.

Another success factor is the ease of use and the ability to share content quickly. TikTok has managed to promote viral trends and challenges that users worldwide can participate in. These viral trends often have enormous reach and bring a large number of new users to the platform.

3. 📱🤳 8.8 million TikTok downloads in Germany

According to leaked documents from November 2018, it is used by just over four million people in this country, as netzfeuilleton.de reports. On the European continent, TikTok is only similarly popular in France. This is also confirmed by the figures from Priori Data. However, the majority of users live in Asia. In any case, the app seems to be a big hit in India, as the graphic below shows.

4. 🧑‍🤝‍🧑 The demographic development

Young people in particular, the so-called Generation Z, quickly discovered TikTok and use it as their primary social network. The platform has managed to fill a niche that other social media platforms have not covered in the same way. While Facebook, Instagram and Twitter rely more on text, images and longer videos, TikTok offers the perfect platform for fast, entertaining and easily accessible content.

Despite this young user base, TikTok is now also seeing strong growth in older age groups. Especially during the COVID-19 pandemic, when people around the world were in quarantine and looking for entertainment, TikTok was able to attract new users from all age groups. This development shows that the platform is increasingly expanding and is no longer limited to a certain demographic group.

5. ⚖️ Challenges and regulations

Despite its immense success, TikTok also faces major challenges, particularly when it comes to privacy and security. Several countries, including the US and India, have raised concerns about data security as TikTok is a Chinese company and could potentially share user data with the Chinese government. These concerns even led to a complete ban on the app in India in 2020, which meant a significant loss for TikTok in one of its largest markets.

In the US, TikTok has also been at the center of political debates, with moves to ban the app or regulate its business activities more closely. In Europe, too, increasingly strict data protection guidelines are being called for to protect the privacy of users.

These regulatory challenges could limit TikTok's growth in the future, especially in markets where privacy is important. It remains to be seen how the platform addresses these concerns and what steps it takes to protect access to user data and regain user trust.

6. 💰 Monetization and economic prospects

TikTok has increasingly found ways to monetize itself in recent years. One of the most important sources of income is advertising. Brands and businesses have discovered TikTok as a valuable platform for marketing campaigns, especially when they want to target younger audiences. TikTok offers various advertising formats, including in-feed ads, hashtag challenges and branded effects, that companies can use to creatively present their products and services.

In addition, TikTok also offers opportunities for content creators to earn income. The TikTok Creator Fund and TikTok Marketplace allow influencers and content creators to earn money through partnerships with brands. These mechanisms have helped establish TikTok as an attractive platform for creative people who want to monetize their content.

Another important aspect of monetization is the TikTok Shop, which allows companies to sell products directly through the app. This function has proven to be extremely successful, particularly in China, where e-commerce via social media plays a large role. TikTok plans to roll out this model in other countries and could thus become a significant player in the social commerce sector.

7. 🌍 Cultural influence and social responsibility

TikTok has not only changed the way people consume content but has also influenced cultural trends and movements. The platform has helped create a new generation of internet stars who are known worldwide. Influencers like Charli D'Amelio and Addison Rae have millions of followers and have now become brands themselves.

At the same time, TikTok has played an important role in bringing social and political issues to people's attention. During the Black Lives Matter movement, for example, the platform was used to draw attention to racism and call for participation in protests. Topics such as mental health, climate change and social justice are also discussed on TikTok by users from around the world.

Nevertheless, TikTok has a responsibility to ensure that the content on the platform does not lead to harmful behavior or spread false information. There have already been cases where TikTok has been criticized for spreading fake news and dangerous trends. The platform must therefore continue to take measures to ensure that content is moderated responsibly.

8. 🔮 The future of TikTok

Despite the challenges TikTok faces, the future of the platform remains bright. The app has proven that it is more than just a passing trend and has firmly anchored itself in the social and digital fabric of modern society. With continued feature development, expansion into new markets, and continued integration of e-commerce and monetization capabilities, TikTok has the potential to establish itself as one of the largest and most influential platforms in the long term.

It will be exciting to see how TikTok develops in the coming years and what role the platform will play in the digital landscape. In particular, the integration of virtual reality, augmented reality and other new technologies could help TikTok offer even more interactive and immersive user experiences.

🌎🎨 Influence on global culture

TikTok is a platform that has managed to significantly change the world of digital entertainment in a short period of time. The combination of innovative features, viral content and a strong user base has made TikTok one of the most used apps worldwide. Despite the regulatory challenges and privacy concerns, TikTok's influence on global culture and the way people consume content remains undeniable.

With the right adjustments and a sustainable strategy, TikTok has the potential to continue to grow in the coming years and solidify its position as the leading short-video platform. While the privacy and regulatory challenges the platform faces may pose hurdles, TikTok's innovative nature and the app's growing popularity suggest it will continue to play a significant role in the world of social media becomes.

📊 The numbers shown in the graphic

The numbers shown in the graphic show the number of TikTok downloads in millions in 2020 (Android and iOS), broken down by country. They give us a clear overview of where the platform is used the most in different parts of the world.

📱 1. India: 99.8 million downloads (Android dominated)

India recorded by far the highest number of TikTok installs in 2020, with 99.8 million downloads. This is particularly notable considering that the majority of these downloads are via Android, reflecting the widespread adoption of Android smartphones in attributed to India. The country, which has a huge and predominantly young population, has seen a sharp increase in the use of mobile devices and social media in recent years.

Android is so dominant in India because there is a wide range of inexpensive smartphones that many people can afford, while iPhones are considered luxury products. This figure also shows that TikTok viewed India as one of its most important markets before it was banned there in 2020. Despite the ban, this high number shows how big the potential was for TikTok in India and how important the Indian market was for the platform.

🌎 2. USA: 45.6 million downloads (high iOS share)

In the USA, the number of TikTok downloads is 45.6 million, although it is noticeable that the proportion of downloads on iOS devices is particularly high. This is significantly different from India and many other countries, as iPhones are more widely used in the US, particularly among younger people and in urban areas.

This number shows that the US is an extremely important market for TikTok, although TikTok faces strong competition here from platforms such as Instagram, Snapchat and YouTube. Nevertheless, TikTok has established itself in the US as a leading platform for young people who want to consume and share short videos.

🇧🇷 3. Brazil: 34.7 million downloads (mainly Android)

Brazil also has a significant TikTok user base with 34.7 million downloads, with Android clearly dominating this market. TikTok's growth in Brazil can be attributed to several factors, including a large youth population and the popularity of mobile applications, especially in a country where mobile devices are often the primary means of access to the Internet.

Brazil is known for its dynamic culture, which is heavily influenced by music and dance - the very content that is particularly popular on TikTok. Many of the viral challenges and music trends on the platform have their roots in Brazil, which further explains the high number of users.

🌏 4. Indonesia: 30.7 million downloads (mostly Android)

Indonesia is another important market for TikTok with 30.7 million downloads, although the majority of downloads here are on Android. Indonesia is the most populous country in Southeast Asia and has a very young, technology-savvy population. Again, Android smartphones are widely used due to their affordability.

TikTok has built a strong presence in Indonesia by promoting local content and trends. The platform has spread particularly quickly there as many Indonesians use smartphones as their primary means of connecting to the internet.

🌍 5. Russia: 25 million downloads (strong Android share)

25 million downloads were recorded in Russia, where Android also dominates, similar to other emerging markets. Russia represents a unique market as there are already strong domestic social networks such as VKontakte. Nevertheless, TikTok was able to build up a significant user base here, especially among younger people who are interested in international trends.

Despite local competition, TikTok has managed to find a niche in the Russian market by betting on creative and viral content that is easy to create and consume.

🇲🇽 6. Mexico: 24.2 million downloads (mostly Android)

There were 24.2 million TikTok downloads in Mexico, with Android being the leading platform here too. As in many other Latin American countries, TikTok in Mexico has found a young and active user community who use the platform for both entertainment and self-expression.

Mexico is another example of a country where mobile technologies are the main source of internet access. TikTok has particularly benefited from the increasing use of inexpensive Android smartphones. The platform has established itself as a popular platform for music, dance and comedy in Mexico. Since Mexican culture is heavily influenced by music and lively social interactions, TikTok offers an ideal platform for young people to participate in viral trends and express their creativity.

The high number of downloads in Mexico shows that TikTok has managed to build a loyal user base in a country known for its cultural diversity and love of entertaining content. This also shows that TikTok is particularly well received in countries where social media is often a refuge for creative expression and community experiences.

📈 Analysis and conclusions from the download numbers

The download numbers from different countries offer some interesting insights into global distribution and user behavior on TikTok:

📲 Android dominates in emerging markets

In most emerging markets, especially India, Brazil, Indonesia, Russia and Mexico, Android downloads are clearly in the majority. This can be attributed to several factors that explain the prevalence of Android smartphones:

Pricing

Android smartphones are available in a wider price range and offer many low-cost models, making them accessible to people in these countries who are on a budget.

Access to the Internet

In many of these countries, access to broadband internet is limited, and mobile data is often the main way to get online. Android devices, which are often available with cheaper data tariffs, offer optimal access to platforms like TikTok.

App ecosystem

The Android ecosystem is more open and offers a variety of apps tailored to local needs and language preferences, which has also fueled TikTok's popularity in these markets.

📱 High iOS share in the USA

In the US, the graph shows a significant number of downloads via iOS devices. This is in contrast to the other markets presented and is indicative of the proliferation of iPhones in the United States, particularly among teenagers and young adults. iPhones are often viewed as status symbols and have a large following in the US, which contributes to the widespread use of platforms such as TikTok on iOS devices.

Social dynamics

In the US, social dynamics also play a role, particularly the importance of influencers and celebrities who made TikTok popular. Many of these influencers use iPhones, which leads to their followers also downloading and using TikTok on iOS.

High quality content

iPhones often offer better cameras and software that can be used to create high-quality videos, attracting TikTok users who want to produce their content at the highest level.

⚖️ Political and regulatory challenges

The graph shows impressive download numbers in India, but this needs to be viewed in a different light as TikTok was blocked there in 2020 due to geopolitical tensions with China. India was one of the largest markets for TikTok, and the loss of this market posed a major challenge for the platform. This shows how dependent platforms like TikTok are on the political and regulatory frameworks in different countries.

There have also been concerns in the US about data security and the possible ban of TikTok due to its Chinese roots. These geopolitical tensions could escalate further in the future, posing a threat to TikTok in key markets.

📈 Cultural adaptability as a success factor

Another notable aspect that emerges from these numbers is TikTok's cultural adaptability. The platform has not only gained a foothold in various countries, but has actively adapted to local needs and preferences.

Local trends

For example, in Brazil, TikTok has promoted local music and dance styles, while in Indonesia a lot of content is published in the local language and with reference to local traditions and customs. This ability to leverage and promote local trends has helped TikTok stand out from other platforms, which often offer a more globalized, unified experience.

Collaboration with influencers

TikTok has worked with influential people in many countries to spread the word about the platform. This strategy, which incorporates local influencers, is a key factor in the platform's rapid growth.

📊 5. The influence of the demographic factor

Another important factor that emerges from the numbers is the influence of demographics. Countries with large, young populations, such as India, Indonesia and Brazil, have particularly high numbers of downloads. Young people, who are generally open to new technologies and trends, make up the majority of TikTok users. In these countries, TikTok is used not only as an entertainment platform, but also as a social network and creative outlet.

Youth culture

TikTok is particularly good at catering to youth culture. The short, entertaining video clips appeal to young people who often have short attention spans and want to consume content in a quick and easy way. The platform has managed to establish a new form of digital storytelling that is particularly well received by young people worldwide.

📌 Future central role in the global social media landscape

TikTok has achieved immense popularity worldwide in 2020, as shown by download numbers in various countries. While Android devices dominate in emerging markets such as India, Brazil, Indonesia and Mexico, iOS downloads also play an important role in developed markets such as the USA.

TikTok's ability to adapt to local conditions, promote viral trends and appeal to a youth audience has contributed significantly to this success. At the same time, however, the platform also faces political and regulatory challenges, especially in important markets such as India and the US.

Looking forward, TikTok could further diversify its business model by incorporating more monetization options such as in-app purchases and advertising, while strengthening its position in new markets. If TikTok maintains its ability to adapt and innovate, the platform could continue to play a central role in the global social media landscape for years to come.

However, Bytedance, the creators behind Tiktok or the Chinese news platform Toutiao, is only likely to be known to start-up experts. The start-up recently rose to the top of the list of the most valuable young companies in the world, see also our article “ The Top Ten Unicorns ”.

A unicorn refers to a startup company with a market valuation, before an IPO or exit, of over $1 billion.

📱📈 In June 2020, the download numbers in the Google Play Store in Germany showed a clear picture of the most frequently downloaded Android apps. This data provides valuable insights into user behavior and preferences of Germans. What's particularly noticeable is that the list of top 10 apps is dominated by a mix of social media, useful applications and entertainment-oriented apps. A deeper look at these numbers reveals exciting trends and developments that are manifesting themselves in the months of the pandemic and the resulting behavioral changes.

🎥 1. TikTok: 982,000 downloads

TikTok topped the list with a massive 982,000 downloads. This video sharing platform has gained popularity worldwide and become a cultural phenomenon. TikTok experienced an exponential increase, particularly among younger users, not only in Germany but also globally. The lockdowns, which forced many people to stay at home, encouraged the use of social media platforms such as TikTok, where users could create and consume creative content. The high number of downloads illustrates the attractiveness of the platform, which allows users to create and share short videos, often accompanied by music or humorous clips that go viral.

💬 2. WhatsApp: 844,000 downloads

WhatsApp, the leading messaging app, is second with 844,000 downloads. The app has become essential for daily communication in Germany, allowing users to send messages, images, videos and even voice and video calls for free. In times of social distancing and working from home, WhatsApp has been an important tool for staying in touch with friends, family and colleagues. The high number of downloads reflects the need to be able to communicate through a reliable and accessible platform, especially during a period when physical meetings were limited.

🛒 3. eBay classifieds: 633,000 downloads

The strong ranking of eBay Classifieds with 633,000 downloads shows that many people have increasingly used online marketplaces to buy and sell used goods during the pandemic. The platform allows users to post ads and search for items in their area for free. This is particularly important during times of economic uncertainty, as many people sought cheap alternatives to new products or tried to generate additional income by selling items they no longer needed.

🦠 4. Corona warning app: 607,000 downloads

The Corona warning app reached 607,000 downloads and is an impressive example of the German government's efforts to contain the spread of COVID-19 through digital means. The app was designed to track chains of infection and notify people if they have been in contact with infected people. The fact that the app is in the top 5 most downloaded apps in June 2020 shows that the population was serious about fighting the pandemic and was willing to use technology to protect themselves and others. However, the app also met with criticism because not all functions ran smoothly, and acceptance among the general population was still an issue at the beginning.

📸 5. Instagram: 564,000 downloads

Instagram, the popular photo and video sharing app, recorded 564,000 downloads. As one of the most important social media platforms, Instagram has become a central channel for many Germans to network with friends, share content and follow influencers and brands. The strong download number reflects how important visual communication is in today's digital world. During the pandemic, Instagram also provided a platform where people could share their experiences and be part of a larger, virtual community.

📝 6. Samsung Notes: 536,000 downloads

Samsung Notes, a simple and functional note-taking app, recorded 536,000 downloads. Many people have been using their time at home to increase their productivity, and a note-taking app is a useful tool for capturing thoughts, tasks, and ideas. This app was particularly useful for Samsung users because it integrates seamlessly with other Samsung devices and services. The high number of downloads suggests that many people focused on their personal tasks and projects and used digital tools to better organize their everyday lives.

✉️ 7. Samsung Email: 531,000 downloads

Samsung Email, the native email app for Samsung devices, was downloaded 531,000 times in June 2020. This app is a central platform for managing email and supports a wide range of account types including POP3, IMAP and Microsoft Exchange ActiveSync. The high number of downloads shows that despite the many email services available, the integrated Samsung app remains popular among Samsung users due to its simplicity and compatibility. Especially at a time when many people were working from home, managing email was an essential part of daily life.

🧩 8. Tangle Master 3D: 527,000 downloads

Tangle Master 3D, a puzzle game that challenges players to untangle knotted ropes, achieved 527,000 downloads. This game is a perfect example of how people were looking for easy and fun ways to pass their time and relieve stress during the pandemic. Casual games like Tangle Master 3D have become very popular because they are easy to access and take up little time, making them ideal for short breaks or relaxing moments.

🐱 9. My Talking Tom Friends: 525,000 downloads

With 525,000 downloads, “My Talking Tom Friends,” another popular mobile game, is also one of the top apps in June 2020. This game, in which players care for and interact with a virtual pet, is particularly popular among younger users. The increasing demand for entertaining apps for children and families during lockdown is reflected in the popularity of games like My Talking Tom Friends, which not only provide entertainment but also encourage playful interaction.

🚔 10. Prison Empire Tycoon: 501,000 downloads

Prison Empire Tycoon, a strategy game in which the player has to manage a prison, recorded 501,000 downloads. Strategy and building games have established themselves as a popular genre in recent years, and the pandemic has only increased this demand. In Prison Empire Tycoon, players have to manage resources efficiently, which offers an interesting challenge and ensures long-term gaming entertainment. Such games often offer a combination of strategy and simulation, which is particularly popular with users who like to plan and manage.

🔍 Mixture of communication, entertainment and practical use

The download numbers from June 2020 give us valuable insights into the digital behavior of Germans in an extraordinary time. While TikTok and WhatsApp covered social and communication needs, games like Tangle Master 3D and Prison Empire Tycoon offered entertaining distractions. At the same time, the Corona warning app brought a serious health concern into focus. This mix of communication, entertainment and practical use shows that app usage during the pandemic was diverse and covered different aspects of daily life.

One exciting trend we've seen is the growing popularity of casual games that offer quick and easy entertainment. At the same time, usage of social media platforms such as TikTok and Instagram remains high, underscoring the continued importance of social networks in digital life. The role of useful apps such as Samsung Notes and Samsung Email also shows that efficiency and productivity continue to be important factors, especially for people working from home.

The app landscape in Germany in June 2020 is heavily influenced by the effects of the pandemic. It will be interesting to see how these trends develop in the coming months and years, especially in a world that is gradually recovering from the crisis.

 

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