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Not many apps have seen as impressive a start as TikTok. With its signature short-form mobile video format, the platform has fast become the ultimate go-to hub for peer interaction and entertainment for over 500 million daily active users.
And TikTok is not going anywhere. In fact, it became the second most downloaded app across Apple and Google app stores in 2019 — behind only WhatsApp — leaving Messenger, Facebook, Snapchat and Instagram behind.
With similar target audiences and content categories, it’s Instagram that’s often voiced to be the most direct rival of TikTok. So, should the Facebook-owned giant feel threatened?
The amazing growth of TikTok
The history of TikTok traces back to September 2016, when it was launched in China under the name “Douyin.” It’s owned by ByteDance (the world’s most valuable startup), an internet technology company with an estimated worth of $75 billion.
While the app originally targeted the Chinese audience only, its rapid growth prompted international expansion. It was introduced to international users under the name TikTok a year after its initial launch.
Shortly after, ByteDance purchased Musical.ly, a platform that contained a substantial user base when the video app Vine collapsed, giving the Chinese company a great opportunity to access the U.S. audience. What followed was a merger of Musical.ly into TikTok in August 2018. All the profiles were transferred to the TikTok platform, giving the app a major boost.
With short lip-sync, comedy and talent videos, the app has fast gained popularity among the young generation. And with its music-centric approach, it became the meeting place for music fans who were awaiting exclusive releases and were hungry to discover new talent.
Is TikTok a threat to Instagram?
There’s one primary reason to believe in the bright future of TikTok: The app’s main driving force is Gen Z, who will make up 40% of all U.S. consumers this year. Members of this generation are all about entertaining video content and authenticity. So, polished and superficial content won’t cut it.
In a recent interview, Snap CEO and founder Evan Spiegel said, “I love TikTok; I’m a big fan,” while stressing the talent-centered focus of the platform, rather than a status-based focus. In his words, TikTok is about “people who have spent a couple hours learning a new dance or think about a funny new creative way to tell a story, and they’re really making media to entertain other people.”
This powerful idea is certainly something that could bring Instagram off the throne. But the app is planning to fight back and repeat a move that has already proven successful in the past. In August 2016, Instagram introduced Stories, a tool inspired by Snapchat’s iconic feature. This time, it’s releasing a functionality called “Reels,” an add-on to Stories that will allow users to create 15-second videos set to music — very similar to TikTok’s format. Reels is currently only functional in Brazil but is expected to launch in other regions over time.
TikTok also understands the value of creators. It has already established a marketplace that enables brands to easily find creators across the platform to partner with. Even though the platform only displays a few metrics and has limited measurement capacities, TikTok could catch up very quickly and take the lead in the influencer marketing world.
The TikTok controversy
However, TikTok has one thing to be careful about. There are concerns that the app has ties with the Chinese government, raising suspicion about any interference with user data and content management on the platform. This prompted U.S. lawmakers to launch an official investigation to understand how TikTok handles and stores user data.
But this isn’t the first time TikTok has faced data privacy allegations. In February 2019, the app was obliged to pay a $5.7 million fine to the Federal Trade Commission for illegal collection of personal data of children under the age of 13.
Still, these scandals are not likely to draw a significant percentage of users away from TikTok. While Gen Z may be well aware of the potential risks, they feel these are so omnipotent across platforms that they don’t present enough leverage to outweigh the app usage.
While perhaps the most recent allegations over content censorship raised more attention among those holding social justice dear, TikTok’s censorship of videos covering the Hong Kong protests is also not going to be a fatal hit for the platform.
Despite the controversies, TikTok is certainly a worthy opponent to Instagram. With its bubbly and authentic format — popular among the younger generations — it makes perfect sense that Instagram is trying to catch up. Only time will tell whether it succeeds or not.
This is a great opportunity for brands. They can leverage TikTok as a branded marketing channel and follow different trends to create content that resonates with their audience. Alternatively, they can look into promoted content. As with Instagram, influencer campaigns are also a safe bet. Having the product promoted by peers and in a more natural way is fundamental to engaging younger generations.
