Innovative Business Model

Gonzalo Arguello A01027156

Rebeca Siller A01365378
 The TikTok business model
primary idea was fast content,
with 15 seconds of homemade
videos, with dancing, lip-sync, and
make-up challenges. This new
concept of video made TikTok a
popular influence that, in a few
years, became a 50-billion-worth-
startup.

● TikTok was launched by

ByteDance, a company
founded by Zhang Yiming

● 2018 - Another app of

ByteDance, Musical.ly
merged with TikTok
● Available in 150
countries
worldwide
● 75 languages
● 1 billion users
around the world
and 2 billion
downloads
● Places the
application in
fourth place with
the highest
number of users in
the world.
Key Partners Key Activities Value Proposition Customer Relationship Customer
● Platform ● ● Users: provides a
● Content developers Multi-sided Segments
● Influencers and maintenance platform that offers customer help center, ● Viewers
● Optimization a space where that provides the best
celebrities ● Creators
● E-commerce ● Design users can easily experience to the user.
● Advertisers: provides ● Brands
businesses become inspired
the metrics to publish
● Companies and Key Resources and entertained their products.
brands that want to ● Tiktok ● Content
sell or advertise on Platform recommendation
Channels
social media ● The algorithm through the use of ● Tiktok app
IA. (Users get to
see what they
desire)

Revenue Streams
● The ads: advertisers select their target demographic and TikTok
Cost Structure
● Data centers, employers and developers paychecks, places this messaging in front of the advertiser’s desired audience.
marketing, investments in infrastructure and ● Gift purchases: can be made when users convert their real money in
administrative offices bills. exchange for TikTokens. A user can purchase 100 TikTokens for 99
cents.
TikTok’s algorithm stands tall on a
MIT’s Technology Review list of 10 breakthrough technologie
s in 2021.
.
The creation of content has never been so simple and fun,
effectively putting a studio, with music, effects and editing
tools, in everyone’s pocket, wherever they go.
TikTok is currently regarded as one of the world’s most
creative media businesses. According to a Kantar survey of
18,000 customers and 900 top marketers.
The outcomes show that TikTok ads are the most fun and
entertaining, it has been downloaded over 2.6 billion times
worldwide. In January 2021, TikTok had 62 million downloads.
In Q1 of 2020, the app had 315 million downloads, which is
the best quarter by any app, ever. (Azeem, 2022)
TikTok Revenue
TikTok has rapidly increased its revenue generation in the past few years. In 2021, it generated $4.6
billion, a 142% increase year-on-year.
References
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Retrieved September 17, 2022, from https://azmitech.com/tiktok-is-the-most-innovative-global-media-brand/
Pereira, D. (2022, July 18). Tiktok business model. Business Model Analyst. Retrieved September 17, 2022, from
https://businessmodelanalyst.com/tiktok-business-model/
Person. (2022, April 11). TikTok's ad revenue to surpass Twitter and Snapchat combined in 2022 - report . Reuters. Retrieved September
17, 2022, from https://www.reuters.com/technology/tiktoks-ad-revenue-surpass-twitter-snapchat-combined-2022-report-2022-04-11/
Tiktok App Report 2022. Business of Apps. (2022, August 24). Retrieved September 17, 2022, from
https://www.businessofapps.com/data/tiktok-report/
Tiktok revenue and Usage Statistics (2022) . Business of Apps. (2022, August 19). Retrieved September 17, 2022, from
https://www.businessofapps.com/data/tik-tok-statistics/
Tiktok marketing strategy: A Complete Guide to succeeding on TikTok . Bullseye Strategy. (2022, September 12). Retrieved September
17, 2022, from https://bullseyestrategy.com/tiktok-marketing-strategy-a-complete-guide-to-succeeding-on-tiktok/
Tiktok is three steps ahead on innovation and content creation . WIRED Middle East. (2022, June 29). Retrieved September 17, 2022,
from https://wired.me/technology/tiktok-innovation-and-content-creation/