The Next TikTokification Phase Is Here
One of the defining post-pandemic shifts in tech has been unfolding in the social media space. Seemingly overnight, tech giants including Meta and Google found themselves on the ropes, fighting a new kind of competitor: TikTok and algorithm-fueled video timelines. From my vantage point of analyzing quarterly earnings, we are already seeing the next phase of TikTok’s influence seeping through the industry, and the observations make me increasingly worried about where things are headed.
Beginning in late 2021 and coming to a head in early 2022, Big Tech’s layoffs caught many people off guard. Various theories were floating around as to what was going on. Some of the theories came across as being a bit out there – such as Apple ATT being blamed for single-handily bringing down the entire advertising complex and all of the businesses that depend on it to drive revenue. The subsequent rebound (and we are talking in some cases strong rebound) in the advertising giants’ performance puts a fork in that questionable theory.
Instead, macro unknowns and TikTok hit Big Tech’s digital advertising revenue so quickly that management teams had no choice but to cut payroll ASAP.
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