The news: At least 300 current TikTok and ByteDance employees list Chinese state media as a former or current employer on LinkedIn, per Forbes, highlighting the app’s controversial ties to China as it battles internal turmoil about its extraordinary advertising demand.
Navigating the ad boom: When advertiser interest in the platform exploded during the pandemic, TikTok struggled to adapt ad formats and internal policies to satisfy its newfound demand.
- TikTok’s ad popularity boomed in part because its flagship “For You” algorithm circumvented damage from Apple’s privacy updates. It also released features letting advertisers create their own ads that were significantly cheaper than other rival platforms.
- One marketing executive told The Information that TikTok ads cost “about 30% to 40% less [than other social media platforms]... and can deliver equally as strong results.”
- But some of its most expensive and high-profile ad formats have failed dramatically. A “hashtag viral challenge” campaign—a direct-response ad that encourages “duets” and can cost as much as $500,000—from Starbucks last summer ended in embarrassment, and few such campaigns have taken off.
- TikTok isn’t giving up on direct-response marketing yet. In April, it launched “Interactive Add-Ons,” a format that lets advertisements in the video feed feature polls or other prompts, keeping the engagement of direct-response marketing without risking high-profile embarrassments.
A shaky lead: It’s impossible to deny TikTok’s impact on advertising since YouTube, Meta, and others are trying to copy its viral format. But recent reports reveal that TikTok is having trouble keeping up with its own success.