the business of TikTok in Europe It bloomed last year. The platform of vertical videos of Chinese origin invoiced more than 990 million dollars in 2021 (more than 992 million euros), multiplying almost by six the 172 million obtained in 2020. This was advanced this Monday by the newspaper ‘Financial Times’, which has had access to UK Companies Registry data.
On the other hand, the social giant also increased by a third its losses, something that is attributed to the meteoric rise of the application, one of the most popular in the world. TikTok is estimated to have already surpassed 1 billion monthly users worldwide. The increase in downloads experienced in recent years led its owner, the Chinese company ByteDance -based in Beijing-, to also increase spending to expand into new markets, improve advertising aimed at its users and hire thousands of employees. The pre-tax loss was $896 million.
According to documents obtained by the Financial Times, TikTok currently has 4,396 employees in Europe, including the UK. Of those almost 1,000 million billed, most were generated in the European Union (532 million) and the other 279 million were entered into British territory.
The business of TikTok
just like they do GoogleGoal (Facebook and Instagram) Y TwitterTikTok’s business model is mainly based on the digital advertising. Thus, online ads accounted for more than 802 of the 990 million billed in Europe during 2021. These figures quintupled the advertising revenue of 2020, the year in which the ‘app’ launched advertising.
On the other hand, TikTok has experimented with including in-app purchase links so it can double as an e-commerce space. Despite the fact that this function has encountered multiple problems, the ‘Financial Times’ has advanced that the company plans to extend it to the North American market.
George is Digismak’s reported cum editor with 13 years of experience in Journalism