Tiktok users / revenue are growing rapidly, and began to compete globally with Facebook / snapchat
Since 2016, tiktok downloads and monthly app revenue have continued to increase rapidly. In 2021q4, there are 651 million Maus worldwide, maintaining an advantage of more than 20% over snapchat in the world / North America / Asia Pacific. The user stickiness continued to increase, and the average daily use time per unit user increased steadily, reaching 78.83 minutes in 2021q4.
IDFA performed well under the new deal, and the UGC attribute laid a good foundation for the growth of advertising business
In April 2021, IDFA adjusted the user privacy agreement under the new deal. If users refuse to track data, the advertising platform will not be able to obtain device information and display personalized advertisements according to user portraits. The efficiency of advertising exposure will be reduced and the measurement of traffic value will be more difficult. Tiktok for business (ttfb) has stronger adaptability under the new system. At the same time, its UGC based advertising business such as challenge advertising and celebrity marketing has excellent performance, high-quality interaction, clear advertising business and good growth.
E-commerce organically promoted China’s mature model, and the pilot of building closed-loop + independent app was promoted smoothly
China tiktok China’s mature model is gradually extended to overseas markets by using TikTok’s experience in developing China’s vibrant commercial e-commerce and relying on TikTok’s huge traffic entrance. We believe that the development of TikTok business is quite 20182019 years’ tiktok, and we expect to gradually promote the integration of e-commerce from logistics warehousing and service ecology.
The layout of entertainment live broadcast takes a long time, and the open guild creates an ecological chain
In 2021, TikTok launched PC version before shaking to cater for the habit of live watching by overseas users. At the same time, the open guild was built to build the live ecological chain, and gradually matured in traffic distribution, red man incubation and red man management. It is expected that with the commercialization of the tiktok, it will continue to grow.
Investment suggestions:
Tiktok is currently in the stage of rapid user growth and early commercialization. We think we should focus on advertising and e-commerce related investment opportunities.
\u3000\u30001. Advertising marketing: advertising agents are an important part of the platform ecology. Advertisers put advertisements in tiktok app through agents to guide their product application or brand promotion. With the growth of tiktok users and the continuous improvement of advertising crowd data in the future, we expect advertisers to continue to increase their investment on tiktok platform, and tiktok advertising revenue will further increase, which will bring new opportunities to enterprises related to advertising formats. In the domestic field, we mainly focus on blue cursor ( Bluefocus Intelligent Communications Group Co.Ltd(300058) . SZ) and Huiliang Technology (01860. HK). All subsidiaries of the above enterprises are the core advertising agents of tiktok; Internationally, we focus on the WPP group (WPP. L / WPP. N) that has reached in-depth cooperation with tiktok.
\u3000\u30002. Electricity supplier: TikTok’s layout in the field of electricity supplier has been gradually increased from some points and areas from some pilot countries to areas covered by the electricity supplier. The infrastructure in the field of electricity providers is also improving. We believe that TikTok business is gradually cutting the electricity supplier’s development path, and first establishing its own system after tiktok cooperation. We found that the penetration rate of overseas e-commerce is low, short video live e-commerce is in the ascendant, and new traffic will stimulate new brand opportunities. Therefore, we expect that Chinese brand overseas companies will have historical opportunities. In terms of categories, we suggest to focus on 3C, clothing and cosmetics, and pay attention to upstream and downstream industrial chain companies of e-commerce. It is suggested to pay attention to the leading overseas enterprise Anker Innovations Technology Co.Ltd(300866) (SZ: Anker Innovations Technology Co.Ltd(300866) ) of 3C category, Yixian e-commerce (YSG. N), a domestic cosmetics overseas enterprise, SHEEN (unlisted), a leading overseas enterprise of clothing category, cross-border social e-commerce platform Xiamen Jihong Technology Co.Ltd(002803) ( Xiamen Jihong Technology Co.Ltd(002803) . SZ) and Shopify (shop. N), which provides in app shopping channels, and square (sq.n) which cooperates with tiktok to provide one-stop shopping experience.
Risk tips: 1. Overseas epidemic control is less than expected; 2. Overseas policy risks; 3. Intensified competition in overseas markets; 4. Business expansion was less than expected. 5. Performance measurement has certain subjectivity and is only for reference.
