Interesting Business Flash: Who Is Bytedance?
7 February 2020
- Bytedance, the mother company of TikTok, is an Internet technology company, established in Beijing in 2012. TikTok, known as Douyin in China, is an iconic social media app offering short video sharing service. The powerful app connected more than 400 million daily active users as of January 2020.
- Unlike the traditional competitors, Bytedance follows a different growth model of the post-PC era, putting its strategic focus on creative content sharing, social media and global expansion.
- Apart from launching a number of short video apps, Bytedance has earnestly acquired/ invested in around 60 companies since 2014, covering content creation, advertising, education, new technology, enterprises services, etc. The graphic shown above covers selected businesses in Bytedance’s ecosystem.
- To create a strong barrier to entry, Bytedance provided multi-brand apps with full spectrum of functions, targeting at various user groups (e.g. Short video: Douyin vs. Xigua vs. Huoshan; Photo editing: FaceU vs. Ulikecam)
- Bytedance not only develops China’s market, but also eyes on global expansion. Popular local app usually comes with an international version (e.g. Short video: Douyin & TikTok, Huoshan &Vigo; News feeding: Toutiao & Topbuzz; Enterprise messaging: Feishu & Lark)
- Bytedance generates revenue from advertising, subscription, gaming, commissions and other value-added services, whereas advertising services is most likely to drive revenues. According to consulting company R3, Bytedance secured 23% of China’s online advertising market in 1H2019, with an estimated value at US$7 billion (Market leaders: Alibaba 33%, Bytedance 23%, Baidu 17%, Tencent 14%).
- Would Bytedance replace Baidu and form a new “BAT” with Alibaba and Tencent?