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We summarized Douyinβs revenue components as well as the key parameters, and organized them into the equations below. In-feed ad load In-feed ad load refers to the ratio of advertisements to other contents in the feed (Wagner, 2017). It can be calculated as the division of advertisements displayed by other contents. πΌπ β ππππ ππ ππππ = ππππ’ππ‘ ππ ππ πππ ππππ¦ππ β 100% ππππ’ππ‘ ππ ππππ ππππ‘πππ‘ (4.1) In-feed ad revenue Initial app opening advertisements refers to the ones that are pushed and loaded when users open the app. Douyin charges on this type of advertisement on a cost per time (CPT) basis, where cost incurs on a fixed time basis, usually per day or per month. In-feed ad revenue measures the amount of revenue generated by displaying advertisements in the feeds of Douyin. It is highly dependent on the exposure and is thus charged by the amount of views, as a proxy for the ad visibility. Douyin uses cost per mille (CPM), which refers to cost per thousand views; cost incurs as long as the advertisement is displayed. It can be obtained by multiply daily advertisement traffic with unit price of advertisement display and the number of days in a year. Daily advertisement traffic can be calculated as DAU times daily advertisement impressions per user, which can then be obtained by the multiplication of daily usage per user in minutes, the number of videos displayed per minute, and Douyinβs in-feed ad load. A more straight forward way for this explanation is to convert it into mathematical formula. - 29 -PDF Image | Analysis of ByteDance with a close look on Douyin TikTok
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