How does TikTok generate revenue? Shou Zi Chew is the TikTok CEO. After working as the Chief Financial Officer (CFO) of TikTok’s parent business, ByteDance, since March 2021, Shou Zi Chew was appointed CEO of TikTok US in June 2021.
Chew spent several years as the CFO of Xiaomi, a Chinese electronics and smartphone startup, before joining ByteDance.
Chew’s hiring as TikTok US CEO came at a critical time for the business as it was under under examination from the US government due to worries about national security and the privacy of user data. Donald Trump, a previous US president, has vowed to outlaw TikTok in the US in 2020, citing worries that the Chinese government would use the app to gather information on US individuals. The prohibition, however, was ultimately overturned by a federal judge, and the Biden administration has subsequently approached TikTok with more restraint.
Chew has been entrusted with handling these intricate regulatory difficulties while simultaneously managing the app’s explosive growth in the US market in her capacity as CEO of TikTok US. TikTok has continued to draw millions of users despite the criticism surrounding it, especially among younger age groups. One of the most well-liked social media platforms in the US, TikTok will have more than 100 million members in the US by 2020.
Chew has also been in charge of managing TikTok’s American monetization plan. Like many social media sites, TikTok has been looking for innovative methods to monetize its enormous user base. The app has dabbled with e-commerce partnerships, sponsored content, and advertising in recent years, among other tactics. Chew’s experience managing Xiaomi’s IPO and financial background have probably been helpful assets in this case.
Shou Zi Chew’s selection as CEO of TikTok US has generally been interpreted as a demonstration of the company’s dedication to openness and legal compliance in the US market. Chew has been well-positioned to negotiate the obstacles facing TikTok in the US while simultaneously fostering the app’s growth and innovation in this crucial country because to his considerable financial experience and background in technology.
How does TikTok generate revenue?
With more than 1 billion monthly active users globally, TikTok has grown incredibly popular. TikTok produces income in a number of ways even if the software itself is free to download.
Advertising: TikTok’s primary source of income is advertising. The “For You” stream, the app’s front page, features user-generated videos interspersed with advertisements made by companies and brands. These advertisements can be tailored to certain regions, interests, and demographics. Advertisers have a variety of ad styles to pick from, such as sponsored hashtags, brand takeover advertisements, and in-feed ads.
TikTok also has a live streaming option that enables users to communicate with their fans in real time. During their live streams, viewers can offer virtual gifts to producers that can later be exchanged for cash. A portion of the money made from these gifts goes to TikTok.
TikTok has also branched out into e-commerce, enabling users to purchase goods directly from the app. The app has collaborated with a number of businesses and merchants to produce “shoppable” films, in which viewers may click on links to buy the goods mentioned in the video. A portion of the money made from these sales goes to TikTok.
TikTok recently introduced a Creator Fund to assist content creators that contribute interesting material to the platform. Based on their views, engagement, and other indicators, the fund gives money to artists. This encourages producers to keep putting forth content and aids TikTok in keeping its top artists on the site.