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Home»Entrepreneur»TikTok’s growth rate is collapsing despite a possible US ban: Report
Entrepreneur

TikTok’s growth rate is collapsing despite a possible US ban: Report

The Elite Times TeamBy The Elite Times TeamMarch 12, 2024No Comments5 Mins Read
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This article originally appeared on Business Insider.

One of the key indicators is that TikTok did not grow in the last quarter of 2023. Growth has actually reversed in the United States.

This is shocking for an app that has experienced rocket-like expansion since Chinese tech giant ByteDance launched it in 2016.

The question is why? Some people may want to delete the app.More likely: There’s no more time left in the day for people to watch. more TikTok videos. This is especially true for younger users who are entering the new busy phase known as adulthood.

The data is as follows. This graph is probably far more worrying for the company than a possible ban in the United States.

TikTok’s growth rate is slowing down

These numbers represent average daily user (DAU) growth rates for some of the world’s most popular social media services. This is according to a quarterly review conducted by Evercore ISI analysts utilizing Sensor Tower data.

After crushing the competition from 2020 to the first half of 2022, TikTok’s DAU growth rate collapsed. In the fourth quarter of 2023, this video service lagged behind his Snapchat, YouTube, Instagram and Facebook. Yes, that’s right. The ancient Big Blue app grew faster than his TikTok.

TikTok did not respond to a request for comment.

what is happening?

One interesting theory is that as TikTok users grow up and take on new responsibilities, they spend less time watching videos.

When this app was released, it took the world by storm. Young children and teenagers were particularly attracted to the service’s unique creator-friendly content and culture.

These users were approximately 13 years old when they first downloaded the app in 2016 and 2017. These users are now at least 20 years old. They have full-time jobs or are studying at university. For many people, parents no longer do laundry, cook meals, or drive children to and from sports games, meetings, and other events.

For those of you who haven’t experienced this yet, it’s called “life.” This process takes extra time and leaves you with less time on TikTok.

This is also reflected in the data. The Wall Street Journal recently reported, citing analytics firm Data.ai, that the average number of TikTok monthly users in the U.S. between the ages of 18 and 24 decreased by nearly 9% from 2022 to 2023.

One aspect of TikTok’s business that caught investors’ attention was the amount of time spent. U.S. adults are expected to spend about an hour a day on TikTok by 2024, eMarketer estimates, more than on YouTube.

More time = more opportunities to show people ads and do other things that make money. If some of TikTok’s core users can no longer spend an hour a day on the app, that’s bad for business.

Remember Brielle?

This has given us new recognition for the integrity of a TikToker named Brielle, who was unfairly criticized last year for complaining about her job at her new company.

After getting her first office job out of college, she posted a video explaining how little time was left each day for personal life and basic chores. Older viewers harshly criticized Briere for her naivety and numerous other alleged failings.

What I just realized is that Brielle was probably a heavy user of TikTok who had recently become an adult and realized she didn’t have as much time on the app anymore.

TikTok deletion

I’ve seen this in my own life. My two kids have been big fans of TikTok for years.

My eldest child is currently a second year university student studying mechanical engineering. She is renting her house with her friends. She has a huge amount of studying to do in addition to cleaning the house, cooking, washing dishes, taking out the trash, paying the bills, and of course partying.

A few months ago, she decided to delete TikTok from her phone. She is currently participating in a competition to see who can limit screen time the most in her home.

A year ago, this girl was watching TikTok for at least two hours a day. I’ve given up on limiting this. She’s an adult now, so I don’t have any resistance. Still, she hasn’t been able to keep up with all her new obligations lately, and she still finds herself watching TikTok for hours every day.

My younger daughter lives at home and is still in high school, so her daily TikTok intake is still huge. She plans to go to college in the fall, so she will eventually face a similar dilemma over time.

I’m not alone in this

The Wall Street Journal recently interviewed several TikTok users in their 20s. They have a similar story. In particular, he began to notice that TikTok was interfering with his sleep, work, housework, and relationships.

He also said that many of his friends have deleted the app or used it less in recent months.

Kayla Bruce, a 27-year-old accountant, told the Journal that she stopped using TikTok last year.

“I’m in a good place right now with friends, family, dishes and laundry,” she said. “I don’t want to sacrifice those things anymore.”

“TikTok offers several tools that help millions of people make intentional decisions about how they spend their time, from custom screen time limits to sleep reminders,” a TikTok spokesperson told WSJ. , adding that the app sends regular reminders. These are people with these characteristics.



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