TikTok is testing a feed set apart for shopping in a bid to increase revenues for the company’s corporate parent, ByteDance, according to a TechCrunch report.
The social media giant has created a dedicated “Shop” tab for users in Indonesia, Vietnam, Singapore and the United Kingdom. In comparison, the Chinese version of the TikTok app, Douyin, derives most of its revenue from eCommerce integrated into streams, which include brand partnerships.
TikTok is attempting the same approach with TikTok apps. News site socialmedianews.com noted that the goal is to help the site compete better with Instagram and YouTube in letting creators make money. The threat to TikTok, the website stated, is that creators tend to flock to platforms on which they can make the most money.
For ByteDance, which has made significant cuts including due to financial constraints, the new revenue would be welcomed. Along with other big tech firms, ByteDance has been subject to a crackdown on online activities by the Chinese government.
Even in the United States, TikTok faces scrutiny, with an FCC commissioner calling on Apple and Google to remove the app from their stores over data privacy concerns.
Essentially, TikTok’s future prospects are not guaranteed, which is another reason why ByteDance will be keen to push ahead now and take in as much revenue as it can from these tools and features.
TikTok may also be facing a new challenger in short-video app Triller, which offers similar features and is preparing for an initial public offering, according to a PYMNTS report Thursday (June 30).
The company debuted in 2015 and has been looking at taking on bigger market rival TikTok, as Triller offers similar features like video sharing, editing and social networking. Among Triller’s partners are streaming giant Spotify, Sony Music and Universal Music Group.