{"id":11979,"date":"2020-04-19T11:49:57","date_gmt":"2020-04-19T15:49:57","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/tik-tok-using-ai-to-take-over-the-world\/"},"modified":"2020-04-19T12:32:24","modified_gmt":"2020-04-19T16:32:24","slug":"tik-tok-using-ai-to-take-over-the-world","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/tik-tok-using-ai-to-take-over-the-world\/","title":{"rendered":"Tik Tok: Using AI to take over the world"},"content":{"rendered":"<p><em><strong>1. Introduction<\/strong><\/em><\/p>\n<p style=\"text-align: left\">Tik Tok is a leading short video sharing platform, used by over 600 million users in over 150 countries (Picture below) all over the world. Starting from China in 2016, Tik Tok (DouYin in China) allowed user to share a 15 seconds video on line. The mother company of Tik Tok is ByteDance, founding in 2012, with other services such as Toutiao, Lark, Xigua video and Helo.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-penetration-global.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11974\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-penetration-global.png\" alt=\"\" width=\"520\" height=\"433\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-penetration-global.png 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-penetration-global-300x250.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-penetration-global-768x640.png 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-penetration-global-600x500.png 600w\" sizes=\"auto, (max-width: 520px) 100vw, 520px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><em><strong>2. Value creation<\/strong><\/em><\/p>\n<ul>\n<li>For ordinary people to become famous<\/li>\n<\/ul>\n<p>The videos shared on Tik Tok are not only from celebrities, but more from ordinary people. Tik Tok provided chance for lots of ordinary people to become influencers. With over 50% users below age 35 (Picture below), it gives young people a platform to make themselves celebrities and earn money.<a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/Helo.jpg\"><br \/>\n<\/a><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-user-demograpics-us.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11975\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-user-demograpics-us.png\" alt=\"\" width=\"545\" height=\"303\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-user-demograpics-us.png 1000w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-user-demograpics-us-300x167.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-user-demograpics-us-768x426.png 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-user-demograpics-us-600x333.png 600w\" sizes=\"auto, (max-width: 545px) 100vw, 545px\" \/><\/a><\/p>\n<p style=\"text-align: center\"><em>Source:\u00a0<\/em><a href=\"https:\/\/blog.globalwebindex.com\/chart-of-the-week\/time-against-tiktok\/\"><em>Global Web Index<\/em><\/a><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>Have fun in boring time<\/li>\n<\/ul>\n<p>It is hard to believe that average daily using time of Tik Tok is over 1 hour. In some regions, the average daily using time even increases to over 3 hours during the Covid-19 spread time. Many people feel that Tik Tok made their life happier with lots of creative ways of making videos and reviewing videos. Tik Tok installation kept increase from 2016 to 2019.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-download-history-2017-2019.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-11973\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-download-history-2017-2019-1024x681.jpg\" alt=\"\" width=\"640\" height=\"426\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-download-history-2017-2019-1024x681.jpg 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-download-history-2017-2019-300x200.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-download-history-2017-2019-768x511.jpg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-download-history-2017-2019-600x399.jpg 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-download-history-2017-2019.jpg 1450w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<ul>\n<li>New marketing tools for shoppers<\/li>\n<\/ul>\n<p>For small shoppers who can not make TV advertisement or get celebrity endorsement which needs lots of money, Tik Tok became a new way of making marketing campaign. Lots of small shoppers on Alibaba in China spend money on Tik Tok to promote their products.<\/p>\n<p>&nbsp;<\/p>\n<p><em><strong>3. Value capture<\/strong><\/em><\/p>\n<ul>\n<li>Advertisement revenue. Like mentioned above, shoppers could seek help from Tik Tok to sharing product link in their video to promote their product. Tik Tok earn money from shoppers\u2019s advertisement spending.<\/li>\n<li>Virtual coins revenue. If the audience like the influencer and wanna show their passion, the audience could buy virtual coins form Tik Tok and give virtual gifts to their loved influceners. This is another income for Tik Tok.<\/li>\n<li>Gain influence for Bytedance in China and other countries. As the most famous global app for Bytedance, Tik Tok\u2019s monther company, Tik Tok significantly gain Bytedance\u2019s influence all over the world.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><em><strong>4.What does AI help with?<\/strong><\/em><\/p>\n<ul>\n<li>Consumers (audience) side: Tik Tok use AI to calculate what content will be the best fit for the consumer. When consumer use the app, consumers even do not need to put their preference. AI will automatically get a sizeable database of the consumers\u2019 behaviors.<\/li>\n<li>Producers (content creators) side: Tik Tok will help content creators build the virtual videos, by editing with music, filters and other enhancement. An example is how Tik Tok using technology to create controlled rain in this video: <a href=\"https:\/\/youtu.be\/MTuX-h6I0Hs\">https:\/\/youtu.be\/MTuX-h6I0Hs<\/a>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><em><strong>5. Future<\/strong><\/em><\/p>\n<p>Competing with Alibaba, Tencent and Baidu, Bytedance has a great ambition to make more influence in China and all over the world. As one of the most famous Chinese app globally, Tik Tok\u2019s mission is to inspire creativity and bring joy (from company website).<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-users-global-ranking.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-11976\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-users-global-ranking.jpg\" alt=\"\" width=\"452\" height=\"254\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-users-global-ranking.jpg 1024w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-users-global-ranking-300x169.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-users-global-ranking-768x432.jpg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/tiktok-users-global-ranking-600x338.jpg 600w\" sizes=\"auto, (max-width: 452px) 100vw, 452px\" \/><\/a><\/p>\n<p style=\"text-align: center\"><em>Source:\u00a0<\/em><em>App Annie<\/em><\/p>\n<p>In China, Tik Tok (Douyin)\u2019s daily active user is around 400 million in early 2020. Average daily using time in Tik Tok is over Taobao, JD.com, because of the short video feature. With the board user base and long using time, Tik Tok has the potential power to go to payment industry, delivery food industry, and online shopping industry. There is no limitation for Tik Tok and Bytedance in the future, especially with AI technology and lots of intelligent talents.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><em><strong>Reference:<\/strong><\/em><\/p>\n<p>[1] Minh H. Vo, Anne Yang. <a href=\"https:\/\/cases.insead.edu\/publishing\/case?code=38637\">ByteDance Beyond China: Leveraging Consumer Artificial Intelligence (AI) from Toutiao to Musical.ly and TikTok<\/a>\u201d<\/p>\n<p>[2] Mansoor Iqbal. Tik Tok Revenue and usage statistics 2020.<\/p>\n<p>[3] Beauty Tech. How cutting-edge AI is making China\u2019s TikTok the talk of town<\/p>\n<p>[4] https:\/\/www.tiktok.com\/.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tik Tok uses AI to promote specific contents to different consumers, and helps content creators make videos with music, filters and other enhancement.<\/p>\n","protected":false},"author":11776,"featured_media":11980,"comment_status":"open","ping_status":"closed","template":"","categories":[877,2765],"class_list":["post-11979","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-ai","category-tik-tok","hck-taxonomy-organization-bytedance","hck-taxonomy-industry-technology","hck-taxonomy-country-china"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/competing-with-data-and-ai-challenge\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tik Tok: Using AI to take over the world - 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