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1. Advertisement a. Themaintypeofadvertisementontraditionalvideoplatformsarepre-rolladverts. Pre-roll advertisements are sponsored video clips that are automatically displayed before the actual video content (Campbell, Mattison Thompson, Grimm, & Robson, 2017; Li & Lo, 2015). One main video could have several pre-roll ads of any length. However, due to the unique nature of short videos, advertisements before the each video would deteriorate user experience (Levy, 2017). The dominant types of advertisements on Douyin are, instead, initial app-opening advertisements and in-feed advertisements. i. Initial app-opening advertisements are, by literal means, displayed when users first open the app. It has the widest reach and can be displayed in three forms: images, gifs, and videos. ii. In-feedadvertisementsaredisplayedinuser’snewsfeedbasedontheirspecific portraits. They are shown in the form of short videos, equating content to advertisement, and are thus more widely accepted by users. 2. Online streaming / In-app purchase a. As short videos on Douyin are limited to a 15-second time constraints and means of interaction is limited to comments, Douyin now also supports live streaming. It is widely used by key opinion leaders (KOL), who in turn monetize by virtual gifts sent by their followers. Users purchase virtual gifts with virtual currency developed by Douyin, which can be loaded by and converted from real money. 3. Embedded e-commerce a. E-commerce platforms (e.g. Alibaba) are recently introduced into the Douyin app – a shopping cart icon is displayed at top right corner of the video, showing the items used or mentioned in the respective video. This development made it more convenient for users to purchase the items they are interested without exiting Douyin and opening the shopping app. This development is currently still in the testing phase and is only applicable to users with more than a million followers. 4. Online & offline interactive marketing / brand campaigns a. As a user generated content- (UGC-) centered social video platform, Douyin’s characteristic cultivates a new type of advertisement. Major brands are now holding campaigns. With an award mechanism, these campaigns encourage and incentivize - 27 -PDF Image | Analysis of ByteDance with a close look on Douyin TikTok
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