What does TikTok want from you?
The platform’s primary objectives are “traffic monetization” and “retaining as many users as possible.” Other concerns can be given a lower priority.
Traffic Monetization
Traffic monetization is straightforward: platforms need to generate profit. You can either buy traffic directly, such as by using the basic Promote feature (accessible by long-pressing a video), or you can sell products on the platform, with the platform charging a commission. Alternatively, you can help other merchants sell their products.
Competition for Time
Retaining as many users as possible is a top priority for platforms like TikTok. The competition between various apps fundamentally is a battle over user time. The more time you spend on Twitter or YouTube, the less you have for TikTok.
Viewed from the perspective of time, all activities compete with each other. More time spent shopping at Walmart or doing chores means less time on your phone. Every minute counts since time is a limited resource.
Keeping users engaged not only increases content on the platform but also enhances the chances of converting them with products and services. This engagement leads to stronger connections among users, building a robust social network. TikTok’s strategic depth increases even if you don’t spend money online; simply by consuming ads, which are notably unintrusive on TikTok, you contribute to its revenue.
Time Is the Key
Retaining users and their time is critical. It is essential to understand this concept, as it directly relates to our comprehension of TikTok content creation and its revenue model.
- User time (traffic) × Conversion rate = Revenue
- User time (traffic) × Number of merchants
- User time (traffic) × Number of products
- User time (traffic) × Potential demand
- User time (traffic) × Confirmed demand
- User time (traffic) × Channels connecting people (profile direct messages, emails, websites)
- User time (traffic) × TikTok Live
And so forth…
All commercial value originates from user time.
Summary
Traffic Monetization:
- Investing your own funds to purchase traffic.
- Earning from others, either by opening a store to sell products or assisting merchants in selling their products.
Retaining Users:
Capturing users’ time is essential. The more user time you retain, the greater the potential for future commercial value. This also creates more opportunities for us on the platform.
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