How TikTok, Born in a Communist Country, Is Revolutionizing Capitalism
Modern economies heavily rely on online marketing and e-commerce as crucial elements.
Offering outstanding products or services is no longer sufficient. Businesses must effectively reach potential customers, which is a challenging task, and persuading these customers to purchase a product or service is even more difficult.
Numerous businesses turn to marketing companies, entrusting them to sell their products or services to their target audience.
However, these marketing strategies, regardless of their complexity and ingenuity, may not always align with a business’s objectives, target audience, or budget, leading to disappointing results.
When marketing campaigns fail, businesses, particularly small ones, risk losing time and money, many can’t afford substantial budgets or absorb losses, leaving them financially strained.
Furthermore, marketing or influencer agencies often charge upfront fees without guaranteeing success, adding another layer of risk.
One of the costliest and most prestigious marketing platforms is the Super Bowl, the annual championship game of the National Football League. Each year, millions of viewers watch the game and the commercials aired during breaks. Market research firm Kantar reported that a 30-second spot during Super Bowl LV in 2021 cost an average of $5.6 million.
Advertisers justify such exorbitant expenditure hoping to create significant buzz and impact for their brand both during and after the game. Yet, this approach is often only feasible for elite industries with substantial budgets.
Contrastingly, cost-effective or even free ads can attain online virality through social media. Memorable examples include the man on a skateboard video or the car glass advertisement, which initially were not intended as ads. These unexpected hits can reach a vast audience without significant investment, creating lasting impressions for brands. It’s a phenomenon that marketing companies find hard to replicate consistently.
Consider a family-run business making exceptional chips in their mother’s garage. Despite their quality product, competing with giants like Lays is an uphill battle. Even in the most capitalist countries, opportunities for such small businesses are scarce, often leaving them grappling with banks and marketing teams selling them ambitious plans.
Enter TikTok, the social media platform with an intriguing potential to level the playing field. TikTok has democratized attention, enabling creators of all levels to generate millions of views with quality content. The number of followers a creator has is no longer the key determinant of virality. Both businesses and influencers can become visible on this platform, regardless of their size or follower count.
TikTok’s potential isn’t fully realized yet, but its prospective features could significantly enhance the platform’s commercial capabilities. One such feature could be a program for potential influencers, who would pay a small monthly fee for verification and complete a training course provided by TikTok. This course would instruct them on the platform’s business policies and rules, and they would sign a Non-Disclosure Agreement (NDA) each time they promote a product.
Once verified, influencers could create videos featuring products available for purchase at a small price, earning a 5% commission on each sale. If a small business manages to reach over 10,000 pre-orders, the influencer would automatically become a partner for the next three months. This model provides opportunities for both businesses and influencers, ensuring everyone benefits. TikTok’s equitable algorithm ensures fair competition, making this a viable strategy.
Business niches are ripe for growth, but reaching customers can be a struggle. With the implementation of these ideas, the game could change significantly. Businesses would be able to focus on producing excellent products, influencers could earn a living, and the true potential of capitalism could be realized.
