The company, which is under an executive order to divest control of TikTok this week, is on track to meet its revenue goal for 2020.
ByteDance, the owner of TikTok, is on track to reach its advertising revenue goal for the year. This will firmly establish it as the second-largest giant in China’s digital advertising market.
According to Reuters, the tech company is on track to make at least 180 billion yuan (or $27.2 billion) in annual advertising revenue, making up a significant part of its $30 billion total revenue goal for 2020. The only company that ranks higher in terms of ad revenue is Alibaba.
Though TikTok is ByteDance’s flagship product internationally, the social media app does not contribute much to its parent company’s overall cash flow. Of ByteDance’s ad revenue, almost 60% comes from Douyin, the Chinese version of TikTok. Another 20% comes from ByteDance’s news aggregator Jinri Toutiao, while less than 3% comes from its video platform Xigua.
These final numbers will be updated by the end of the year, as many of the company’s most vital campaigns – including year-end sales – are yet to be launched officially.
ByteDance is currently struggling with an order from the Trump administration instructing it to divest its US operations of TikTok by this Thursday. While ByteDance appears to have reached a deal with Oracle, the company yet filed a petition with a US Appeals Court late on Tuesday challenging the administration’s order while also seeking that the deadline is extended.
ByteDance is looking to other avenues of growth outside TikTok. It has revealed plans to invest 10 billion on its Xigua platform next year. The company also plans to increase Xigua’s count of daily active users to over 100 million, while its Douin eCommerce platform is expected to reach roughly 150 billion in gross merchandise value by the year’s end.
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