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users to produce and upload UGCs that are related to the theme of the campaign. This way, users help to spread the adverts even further and become a medium of communication. Brand images are then reinforced and products are promoted at an exponential speed. All revenue sources are highly dependent on the amount of users and the traffic generated. Currently, Douyin’s revenue streams mainly from advertisement display and campaigns (T. Chen, 2017). In-app purchase and linked e-commerce are premature and in the testing phase, respectively. To put Douyin’s revenue model into more mathematical language, we identified the following key parameters and summarized them in Table 1. Table 1: Parameters used in assessment of Douyin's revenue model Parameter Definition Daily ad traffic Daily Active User (DAU) Daily ad impressions per user The amount of views an ad receives per day10 The number of unique, engaged users per day11 The number of ads viewed per day per user 12 Unit price / Price per ad The price for display the ad per unit, based on the ad type (CPM, CPT, CPC, etc.) Ad load The frequency of ad delivery, which is the ratio of ads to other main contents13 10 Source: MarketingTerms, retrieved from https://www.marketingterms.com/dictionary/web_site_traffic/ 11 Source: MixPanel, retrieved from https://mixpanel.com/topics/daily-active-users/ 12 Impression is counted when an ad enters the viewable area of the screen for the user. Note that there is no universal way in how impressions are counted – wide variety exist among different companies. Source: Facebook (https://www.facebook.com/help/publisher/1028565693903694， https://www.facebook.com/help/publisher/1995974274064245) 13 Source: Recode, retrieved from https://www.recode.net/2017/7/15/15973750/facebook-ads- everywhere-instagram-messenger-whatsapp - 28 -PDF Image | Analysis of ByteDance with a close look on Douyin TikTok
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