In the near-term, it is still far ahead when it comes to the dollars spent on its platform in the U.S., according to a new analyst report.
Meta's other app, Facebook, is not as lucky since it is not faring well against TikTok.
According to new data from analysts at Insider Intelligence, TikTok is on track to overtake Facebook in terms of influencer marketing spend this year and will overtake the No.2 platform, YouTube, by 2024.
In the U.S., YouTube has seen $948.0 million in marketing dollars spent on its platform, compared to Facebook's $739.0 million. According to the report, TikTok has overtaken YouTube in terms of marketer usage for influencer marketing.
The image is from Insider Intelligence.
Users who want to see more of their friends' photos and videos are not the only ones who have complained. Some creators are concerned that their reach could be impacted by the constant changes to the main feed.
Last week, Instagram agreed to roll back some recent updates which saw the app morphing itself into TikTok with a full-screen home feed and increased number of recommended posts, after two of theKardashian's complained. The bigger the number of smaller creators, the harder it will be for mega-influencers like theKardashians to make money.
According to the report, the mix ofinfluencers benefiting from this form of monetization has been shifting over time.
Smaller "micro" and "nano"influencers would be able to take a large slice of the pie as a result of the feed adjustments onInstagram. Micro-influencers are people with 5,000 to 19,999 followers. TikTok has been a part of the draw for creators.
The report says that marketing spend on smaller partnerships has been growing fast. The analysts predict that spending on micro-influencers will increase 220.5% while spending on mega-influencers will grow only 8.0%. The firm defines a mega influencer as having at least 1 million followers.
Smaller creators may have higher engagement rates than larger ones because their rates are cheaper.
They may be less likely to have their view counts artificially increased.
TikTok is accused of inflating view counts and has lower limits for what qualifies as a view for marketers. As soon as the video starts, it is said to count a view. There are questions as to how much TikTok itself could be involved in inflating views, since its owner ByteDance was involved in making fake accounts in a prior app that was a sort of TikTok precursor.
According to Insider Intelligence principal analyst Jasmine Enberg, TikTok is surging in popularity for influencer marketing, but it is still nowhere near the popular photo sharing website. Due to the higher prices creators charge for content, but also because of its wide array of content formats, most of which are now shoppable TikTok is known for it's ability to attract smaller creators. As many creators on TikTok now boast follower counts that rival or surpass those onInstagram and YouTube, it is important for the photo sharing service to retain its lead.
The report estimates that 74.5% of U.S. marketers will use influencer marketing in the next two years.