Growing TikTok... Meta and YouTube Imitate 'Short-Form' Content

Usage Time Surpasses YouTube and Facebook
Ad Revenue Exceeds Combined Annual Sales of Twitter and Snapchat
Meta-YouTube Performance on a Downward Trend

Video sharing platform TikTok surpassed YouTube in average usage time per user worldwide in the first quarter of this year. Photo by TikTok

[Asia Economy Intern Reporter Kim Gun-chan] As TikTok's growth using 'short-form content,' which refers to videos with short playback times, accelerates rapidly, social networking services (SNS) such as Meta and YouTube are also putting great effort into expanding their short-form services. Although there are voices criticizing major SNS platforms for becoming similar to TikTok among users, analysis suggests that they have no choice but to choose short-form as a future source of revenue.

According to the global mobile application (app) market analysis site 'data.ai' on the 25th, TikTok, a video-sharing platform, surpassed YouTube in average usage time per user worldwide in the first quarter of this year. TikTok's average monthly usage time per user was 23.6 hours, exceeding YouTube's 23.2 hours and Facebook's 19.4 hours. TikTok's average monthly usage time surged 140% compared to the first quarter of 2020 and 40% compared to the same period last year.

The secret to TikTok's growth lies in its short-form content?videos under one minute. TikTok first launched its short-form service in 2016 and gained popularity worldwide. The advantage of short-form is that anyone can become a creator (concept similar to YouTubers). Creator activities are possible with just a smartphone without expensive camera equipment like YouTube. Also, short and powerful message delivery makes it a favored advertising medium among companies.

As TikTok's short-form content emerged as a new trend, major SNS platforms such as YouTube and Meta also launched short-form services. Instagram launched 'Reels' in 2020, and YouTube introduced 'Shorts' in July last year. They are also putting effort into building services related to short-form content.

On the 21st, Facebook decided to prioritize content created by creators. Accordingly, it even changed its homepage design to increase accessibility to its Instagram Reels. By changing the content exposure algorithm and design it had maintained, Facebook is responding to TikTok.

Instagram launched Reels in 2020, and YouTube introduced Shorts in July last year. Photo by Instagram

The reason major SNS platforms are interested in short-form is directly related to advertising revenue. Recently, Bloomberg in the U.S. reported that TikTok's advertising revenue is expected to reach $12 billion (about 15 trillion KRW) this year. Compared to last year's advertising revenue of about $4 billion, this is predicted to increase about threefold. This figure exceeds the combined annual revenue of SNS platforms Twitter and messenger Snapchat.

Although TikTok's growth is steep, recent performance of major SNS platforms is on a downward curve. According to Bloomberg on the 27th (local time), Meta's revenue in the second quarter of this year decreased for the first time ever. Bloomberg analyzed that the main causes were reduced advertising due to recession concerns and decreased advertising revenue. In fact, the average advertising price disclosed by Meta decreased by 14% compared to a year ago.

Alphabet's situation is similar. According to the earnings report announced by Alphabet on the 26th, YouTube's advertising revenue in the second quarter of this year grew only 4.8% compared to the same period last year. This is the lowest growth rate since YouTube's advertising revenue began to be officially tallied in the fourth quarter of 2019.

However, criticism is being raised among users about Meta and YouTube's direction becoming increasingly similar to TikTok.

Kylie Jenner (25), an American model with the second-largest number of Instagram followers worldwide, wrote on her Instagram story on the 25th, "Instagram is copying its rival TikTok," and added, "Make Instagram be Instagram." She continued, "I just want to see cute photos of friends, not TikTok videos." Model Kim Kardashian (42), ranked 7th in followers, also joined this claim.

A university student A living in Seoul said, "At some point, Instagram seems to have become TikTok," and added, "There are many ads and Reels I don't want to see, so I don't visit much these days."

Meta and YouTube's performance is on a downward trend, while major SNS platforms are reportedly planning to strengthen short-form and other video content.
[Image source=Yonhap News]

As user dissatisfaction increased, Adam Mosseri, Instagram CEO, posted a video explaining the changes directly. He said, "If users are seeing a full-screen feed of posts (like TikTok), it is only a test," and explained, "It is not enough yet."

However, he indicated that the shift to video content such as short-form will continue. He stated, "The number of users watching and sharing videos is increasing, and we will align with this trend," and "Instagram will become increasingly video-centric."

There is a high possibility that major SNS platforms such as Meta and YouTube will continue to follow TikTok's path with short-form content. Meta CEO Mark Zuckerberg said during the first-quarter earnings announcement this year, "TikTok is the fastest-growing and biggest competitor," and added, "It will take time to catch up with TikTok, but I believe Reels has high growth potential." Sundar Pichai, Google CEO, also stated at the earnings announcement in April, "Short-form is our new opportunity, and we will continue to invest."