TikTok is the social network that has grown the most in recent years, but it has not been spared from poor results. The social network has cut its worldwide revenue targets by 20% by 2022, so they expect revenue of at least 10,000 million dollars. This makes it clear that all companies are struggling with the same problems.
The TikTok CEO Shou Zi Chewcommunicated the news in a virtual meeting, as reported by people close to the company to the newspaper Financial Times. Initially, the social network expected to obtain a turnover at the end of the year of between 12,000 million and 14,000 million dollars this year.
Why does TikTok have to reduce its goals?
Some workers have blamed the company for make large expenses in social events or to hire staff. Something that could be true, since the company paid salaries of more than six figures to some employees of other rival companies. In addition, some of the European staff were partying in Tarragona at the end of September, costing the company £2.5m.
However, the reading of the company has been very different, since considers that advertising and e-commerce revenues have not been enough. This would explain his recent changes that he has made in the United States among senior managers.
Despite everything, the company will continue to have good results, like those presented above. In 2020, the platform generated more than $1 billion in revenue, making it the fastest growing company in the same year. In Europe, TikTok’s turnover managed to grow six-fold last year, but pre-tax losses were more than a third.
Content creators are not satisfied with their earnings
TikTok has started paying content creators who were signed up for the “Pulse” program. However, as shared Business Insider the first payments some creators have received are lower than expected.
The show’s revenue per 1,000 video views (RPM) looks set to be paid at most $17, though it varies from creator to creator. A content creator related to the video game sector who has around 378,000 followers on TikTok has explained that after receiving payment from the program he is only 6 cents richer.