TikTok: The race is on to monetise Gen Z
The video-sharing platform has become a valuable tool for rights holders such as the NFL, aiming to engage with Gen Z. However, TikTok’s recent collaboration with L’Oréal suggests that in the future, it could move beyond engagement and help to monetise this demographic.
Photo Source: The Hustle
For the past couple of years, sport has viewed TikTok as a platform on which it can increase engagement among younger viewers. From a deal with the NFL, to more recent partnerships with Wimbledon and 2020 UEFA European Championships, sports teams have become more and more open to embracing the platform.
And it’s clear why.
According to Whistle Wise, over half of Gen Z would rather look at sports memes and social media accounts than watch a full sports game live. As such, it should come as no surprise that TikTok was the most downloaded app of the year in 2020.
However, TikTok could soon become a platform that goes further than simply helping sports teams engage with this younger generation. It could help to monetise them, too.
Last week, L’Oréal announced that it had partnered with TikTok on a pilot commerce feature, enabling consumers in the UK to purchase it’s Garnier and NYX Professional Make-Up products directly via the app.
L’Oréal’s latest foray is informed by what’s happening in China. In 2019, social commerce made up 11.6% of retail e-commerce sales in the country at $186.04 billion (for context, the corresponding figure in the US was $19.42 billion over the same period).
Following on from livestreaming and live shopping, social commerce is believed to be the “next frontier” among retailers, and it’s likely that sports rights holders will also want to follow suit.
Interestingly, it also sees TikTok position themselves as an entertainment platform rather than a social network. As such, we may seem them begin to compete more against the likes of Amazon and Rakuten than Facebook and Instagram.
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