TikTok — Snapchat’s Biggest Advertiser: What's the Strategy?
TikTok, while publicly maintaining a friendly and distinct relationship with Snapchat, strategically invests heavily—about 80% of its US ad spend in 2019—on advertising within Snapchat's platform to capture young users' attention, despite concerns over TikTok's aggressive ad presence and recruitment of former Snap employees, highlighting a complex dynamic of competition and collaboration between the two social media giants.
TikTok and Snapchat both attract large numbers of young social media users. While it might seem that they are direct competitors, the relationship between the two platforms is more nuanced.
Snap CEO Evan Spiegel has publicly stated his admiration for TikTok, describing the platform as a "friend" rather than a foe. Spiegel notes that TikTok and Snapchat have both developer and advertising partnerships, and that their content offerings are distinct enough to avoid direct competition. TikTok focuses on public, talent-based entertainment, while Snapchat is designed for private connections among real-life friends. Both platforms, however, share the goal of increasing the time young people spend on their phones.
Despite this friendly stance, some industry observers caution that Snapchat should be wary of getting too close to TikTok. ByteDance, TikTok's parent company, has recruited several former Snap employees and leaders from other major tech companies. Additionally, some Snapchat users have complained about the prevalence of TikTok ads in the app's Discovery tab, suggesting that TikTok may be trying to draw users away from Snapchat.
Ultimately, while TikTok and Snapchat offer different experiences, they are still competing for users' attention and advertising revenue. For now, TikTok is investing heavily in advertising on Snapchat.
TikTok’s Advertising Strategy
TikTok has faced criticism for using users in advertisements without their consent, a practice that, while legal, is not considered best practice. There have also been complaints about the frequency of TikTok ads on Snapchat.
MediaRadar research found the following about TikTok's advertising approach in 2019:
- Approximately 80% of TikTok’s US ad spend was dedicated to Snapchat.
- TikTok quadrupled its US advertising spend in 2019 compared to 2018.
- Beyond Snapchat, TikTok also advertised on other mobile formats, including display, video, and native ads, targeting Gen-Z-friendly sites like Tastemade, Buzzfeed, and The Dodo.
- TikTok purchased exhibition space at CES.
- In 2019, TikTok was the top advertiser on Snapchat, outspending major brands such as Coca-Cola, Comcast, Disney, and AT&T.
While the long-term benefits of this strategy for Snapchat are uncertain, both TikTok and Snap appear to be benefiting from their current partnership.
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