Hi ZipLawyer! I'm Ludo Lugnani and this is ZipLaw: an independent newsletter covering the best commercial and legal news from the day. We explain how each story impacts law firms and their clients so that you can stand out in interviews and applications.
Today's newsletter is a ~6 min read:
- 👀 The Battle for Eyeballs: How TikTok is dominating the Ad Industry
- ➕ Plus: Brazil Supreme Courts arrests two officials, Apples makes changes to its supply chain, Sun Cable enters administration and France extends retirement age.
🤿 Deep Dive
The Battle for Eyeballs
- TikTok is offering cheaper rates than rivals and attracting more customers as the ad industry becomes increasingly competitive.
What's going on?
TikTok is offering cheaper advertising rates than rival social media platforms as the fast-growing video app moves to grab a larger share of the digital ads market during a huge slowdown in online ad spending. TikTok, owned by China’s ByteDance, has quickly grown to more than 1 billion users worldwide, and its lower costs and higher engagement make it a potential dominant player in the ad market.
- Why does this matter? TikTok's cheaper advertising rates and better engagement levels are starting to draw away ad spend from other platforms like Twitter and Meta (which owns Facebook and Instagram). That's more bad news for these companies who have already seen a significant slowdown in revenue growth, leading to widespread job cuts.
Worth noting: TikTok has not been immune to the ad industry slowdown. The group cut worldwide revenue targets for 2022 by 20% due to the current market challenges. However, the company still estimated it made more than $10bn in revenue in 2022.
💼 What does this mean for law firm's clients?
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