Is It Tick Tock Boom for TikTok?

Key Takeaways:

• Attack of the clones: TikTok rose to prominence due to innovation in the short form video space along with its in-app monetization strategy. Its success ushered in a new era of consumer engagement and propelled competitors to create competing short form video platforms. Roughly 41%, 28%, 27% and 9% of in-app user time spent on Instagram, Facebook, YouTube and Snapchat was on short-form video surfaces in 4Q24, respectively

  • ST data indicates that consumers are feeling app fatigue, as overall US hours engaged on short-form video, social media and streaming apps fell by 4% YoY in 2024. TikTok’s US hours engaged metric (calculated based on average time spent per user and DAUs) has weakened, down 12% YoY in 4Q24, compared to -1% for Instagram and +3% for YouTube

• A ban would cause a shakeup in the broader digital advertising and consumer entertainment space: per ST, TikTok has an 8% share of US digital ad dollars and generates significant in-app revenue (more than $1.7bn in 2024)

• Utilizing trends exhibited in India in the aftermath of TikTok’s banning, ST projects Meta will likely receive the bulk of TikTok’s share of US app engagement hours, ad spend share and IAP revenue as Instagram (32%) and Facebook (10%) are poised to inherit a combined 42% in 4Q25, with YouTube (29%), Snapchat (23%), X (5%) and Pinterest (1%) slated to likely receive the remaining share