TikTok, which is valued at $238.5B after stock buybacks, saw ad revenue hit $18B in 2023, with projections exceeding $53B by 2027.
Surprisingly, TikTok is expected to reach 1.8 billion monthly active users by the end of 2024. (Business of Apps)
This unexpected surge in user engagement is just one of many intriguing TikTok trading treds.
This article explores statistics revealing the true state and trajectory of TikTok's impact on social media marketing and advertising strategies.
From its rapid growth in user base to the effectiveness of influencer marketing on the platform, these insights illustrate how TikTok is reshaping the landscape of digital marketing and evolving as a compelling space for brands to connect with their audiences.
This article combines open-access resources and proprietary data to present accurate, up-to-date statistics and relevant developments in the digital marketing landscape.
Our methodology involves:
While we strive for accuracy, occurrences in the MaaS market are shifting rapidly.
These statistics reflect current patterns and should not be considered permanent facts.
TikTok trading emerged in the late 2010s, driven by the platform's rapid growth and the increasing interest in financial literacy among younger audiences.
It refers to the practice of sharing trading tips, market insights, and investment strategies through short-form videos on TikTok.
Since its inception, TikTok trading has witnessed significant evolution, with critical milestones such as the rise of popular finance influencers and the creation of dedicated trading communities marking its development.
Today, the TikTok trading market is characterized by a diverse user base actively engaging with financial content, with over 1.5 billion monthly active users.
Major players include influential accounts like @HumphreyTalks (3.3 million followers) and @Tik.Stocks, while trends in digital engagement, consumer behavior and social media influence continue to shape its trajectory.
With 61% of marketers utilizing TikTok for influencer marketing (Sprout Social) and advertising revenues reaching $31.6 billion as of 2022. (Statista)
TikTok trading plays a crucial role in the broader context of digital finance, making it a key area of focus for traders, marketers, and financial educators alike.
TikTok has emerged as a major platform for trends in finance, especially in the area of trading.
This phenomenon, often referred to as TikTok Trading, has seen significant growth as users, particularly younger audiences, turn to the platform for trading advice, financial education, and market commentary.
Here are the major trends in TikTok trading:
TikTok's advertising revenue reached approximately $18 billion in 2023 and is projected to grow to $53 billion in 2027, marking a 30.7% increase year-over-year. (WebFX)
This trend underscores TikTok's effectiveness as a marketing channel, drawing significant investments from brands eager to capitalize on its vast user base.
According to EMARKETER's May 2024 report, TikTok social buyers increased from 35.8 million to approximately 40.7 million.
This growth reflects the platform's shift towards integrating e-commerce features, allowing users to shop directly through the app.
This trend is significant as it transforms TikTok from a social media platform into a major player in the e-commerce space, driving revenue for both the platform and brands.
The popular video-sharing app accounts for 32% of users' social media time, ahead of Instagram and Facebook, spending an average of 34 hours each month on TikTok, creating and consuming content.
This high engagement level indicates that users are not only interested in entertainment but also in financial content, including trading tips and market insights.
This trend is crucial as it shows the potential for marketers and traders to reach a highly engaged audience.
Over half of marketers (50.1%) consider TikTok the most profitable platform for influencer marketing. (Shopify)
71.2% of TikTok shoppers have made a purchase after simply discovering a product in their feeds, 58.2% turn to the app for shopping inspiration, 45% rely on paid influencer recommendations to guide their purchases, and 39.1% actively search for products to buy within TikTok Shop. (Statista)
This statistic underscores the importance of influencers in promoting trading-related content and products, as they can effectively engage audiences and drive conversions.
Influencers on TikTok are becoming key players in shaping trading trends and educating users.
The introduction of TikTok LIVE has revolutionized how users shop, with 50% of viewers reporting they have purchased something after watching a live shopping event. (NOGOOD)
According to a report by Statista, 55% of TikTok users have made an impulse purchase on the platform.
This trend is significant as it combines entertainment with instant purchasing, creating a unique shopping experience that enhances user engagement and drives sales.
Twenty-four percent of marketers report that TikTok delivers a remarkable ROI among social platforms, largely due to the effectiveness of user-generated content. (Statista)
UGC fosters authenticity and relatability, making it a powerful tool for brands to connect with their audience.
This trend highlights the importance of community-driven content in the trading sector.
User privacy is a critical issue, with 38% of TikTok users expressing concerns about the app's data security. (Business2Community)
Recent surveys have shown that a significant portion of users fears their personal data could be shared with the Chinese government, impacting user trust.
For example, the U.S. government has already blocked TikTok on federal devices due to these privacy concerns.
As privacy concerns escalate, brands may find it more challenging to engage audiences effectively.
TikTok is under intense regulatory scrutiny, especially in the U.S., where a recent bill mandates the app's parent company, ByteDance, to divest its U.S. operations within 270 days to protect national security interests. (BRUNSWICK)
On the social media stock market, TikTok's presence has been notably absent, primarily because its parent company, ByteDance, remains privately held.
Failure to comply could result in a complete ban of TikTok in the U.S., which threatens its accessibility to 170 million American users. (BRUNSWICK)
This regulatory environment creates uncertainty for brands leveraging the platform for advertising and engagement.
TikTok's algorithm prioritizes entertaining content, which raises concerns over the prevalence of misinformation and harmful content.
A study indicated that approximately 20% of videos suggested by TikTok's search function contained misleading information on critical topics. (ABC7 New York)
Many users share trading tips without proper expertise, leading to the spread of false or misleading content.
According to a report, trading on TikTok can be high risk due to the dangers of relying on amateur advice, as many creators lack credentials or evidence-based insights.
This lack of content moderation can lead to reputational damage for brands and a decrease in user trust, affecting overall engagement and advertising effectiveness.
As TikTok continues to grow, competition from established platforms like Instagram and Facebook is intensifying.
These platforms have introduced features like Reels and Shorts to attract users and advertisers away from TikTok.
As of 2023, TikTok ranks as the fastest-growing social media platform, surpassing competitors such as Twitter and Snapchat; however, this competitive pressure can dilute its market share.
Current economic challenges, such as inflation and recession, are prompting consumers to prioritize more deliberate purchasing decisions.
A recent study found that 39% of users participated in the "NoBuyList2024" trend, which encourages budgeting and reducing impulsive purchases. (Beauty Matter)
This shift impacts traditional marketing strategies on TikTok, requiring brands to adapt their approaches to resonate with a more value-driven consumer base.
The liquidity pool market has become a critical component in the decentralized finance (DeFi) ecosystem, facilitating various operations such as trading, lending, and yield farming.
As the market matures, several emerging opportunities are emerging for participants, investors, and institutions.
Below are key emerging opportunities in the liquidity pool market:
Influencer marketing on TikTok represents a substantial opportunity for brands to connect with engaged audiences.
Data reveals that micro-influencers on TikTok achieve engagement rates of up to 18%, significantly higher than the 3.86% average for Instagram. (Growth Collective)
Given TikTok's authenticity-driven environment, brands that partner with influencers can leverage their creativity to amplify product visibility.
A prime example is the collaboration between Gymshark and fitness influencers, resulting in the viral gymshark66 challenge, which garnered over 45.5 million views and significantly boosted sales (Ttagz)
TikTok Shop, launched in late 2023, marks a pivotal shift towards seamless e-commerce experiences.
TikTok Shop is emerging as a marketplace where brands can sell financial products directly to consumers, allowing for a seamless shopping experience within the app, enhancing user engagement and sales potential.
By allowing users to purchase products directly within the app, TikTok Shop achieved notable success, capturing 68.1% of social shopping GMV by February 2024; livestream shopping app Whatnot has captured 31% of GMV, while the combined GMV of Instagram Checkout, Facebook Shop, and Flip App amounted to less than 1%. (EMARKETER)
For example, brands like Chipotle have successfully driven sales through innovative campaigns linked to their TikTok Shop profiles, highlighting the effectiveness of direct shopping experiences
TikTok's algorithm allows users to access a plethora of trading-related content, making it a valuable tool for gauging market sentiment.
The platform's visual and engaging format can quickly disseminate breaking news and trading tips.
Traders can search for hashtags like TradingTips or StockMarketNews to find trending content that reflects current market sentiments.
This can help them make informed decisions based on real-time data shared by other users.
The LIVE feature on TikTok enables traders to stream their trading activities in real time, allowing followers to observe strategies and techniques as they unfold.
Example: Popular day traders often host live sessions where they share their trading processes, providing insights into their decision-making.
This interactive format not only engages viewers but also creates a community of learners who can discuss strategies in real-time.
User-generated content is vital for TikTok's brand authenticity.
Campaigns that encourage users to share their experiences and creativity can significantly boost engagement.
For instance, the GuacDance challenge by Chipotle generated over 250,000 user submissions and 430 million video starts in just six days, showcasing the potential of UGC to drive engagement and brand visibility, while its Justin Bieber challenge in early 2020 reached a staggering 95 million people. (Forbes)
This collaborative approach allows brands to tap into the creativity of their audience while fostering community involvement.
As TikTok's user base skews younger, there is a growing opportunity to create educational content that demystifies trading for beginners.
Engaging tutorials and informative videos can attract new traders to the market.
Example: Brands can produce short, engaging videos that explain trading concepts, such as "What is Day Trading?" or "How to Read Stock Charts," catering to the interests of a younger audience eager to learn.
Leveraging analytics and TikTok's algorithms can help brands optimize their marketing strategies.
Brands can utilize TikTok Analytics to measure content performance, audience insights, and engagement metrics.
This data can inform content creation, ensuring that it resonates with target demographics.
For example, the "For You" page recommendations are tailored based on user interactions, making it essential for brands to produce engaging content that aligns with trending topics and user interests. (Social Champ)
The liquidity pool market has a significant impact on a variety of stakeholders, each experiencing both opportunities and risks as the market evolves.
These stakeholders include liquidity providers, traders, DeFi protocols, investors, developers, and regulators.
Below is a breakdown of the impact on stakeholders in the liquidity pool market:
Positive Impact:
Negative Impact:
Positive Impact:
Negative Impact:
Challenges:
Opportunities:
Positive Impact:
Negative Impact:
The TikTok trading sector faces both challenges and opportunities.
While uncertainty about TikTok's future in the U.S. market is a concern, its potential to boost brand awareness and user engagement remains strong.
The rapid growth of TikTok challenges, with billions of views and user-generated content, highlights this duality.
Industry players must adapt their strategies to the evolving TikTok ecosystem.
Those who leverage TikTok challenges to create authentic, entertaining content will likely see significant returns in brand awareness and engagement.
Innovation and adaptability will distinguish leaders from followers in the dynamic world of TikTok trading, allowing brands to thrive in the rapidly evolving digital landscape.
Italian TikToker, Khaby Lame is officially TikTok's most-followed account with over 162.9 million followers, having taken over the likes of Addison Rae and Charli D'Amelio on his ascent.
Creating reactions to many other videos, such as one of the platform's most-liked videos in which he responds to someone's method of peeling a banana, Lame has also overtaken the likes of Dixie D'Amelio, Zach King, and Bella Poarch insanely fast.
The star's popularity doesn't look like it'll slow down, either. There's every chance he could remain the undisputed king of TikTok for years to come.
