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Analysis of ByteDance with a close look on Douyin TikTok

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Analysis of ByteDance with a close look on Douyin TikTok ( analysis-bytedance-with-close-look-douyin-tiktok )

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𝐼𝑛 βˆ’ 𝑓𝑒𝑒𝑑 π‘Žπ‘‘ π‘Ÿπ‘’π‘£π‘’π‘›π‘’π‘’ = π‘‘π‘Žπ‘–π‘™π‘¦ π‘Žπ‘‘ π‘‘π‘Ÿπ‘Žπ‘“π‘“π‘–π‘ βˆ— 𝑒𝑛𝑖𝑑 π‘π‘Ÿπ‘–π‘π‘’ βˆ— 365 = π·π΄π‘ˆ βˆ— π‘‘π‘Žπ‘–π‘™π‘¦ π‘Žπ‘‘ π‘–π‘šπ‘π‘Ÿπ‘’π‘ π‘ π‘–π‘œπ‘›π‘  π‘π‘’π‘Ÿ π‘’π‘ π‘’π‘Ÿ βˆ— 𝐢𝑃𝑀 βˆ— 365 1000 = π·π΄π‘ˆ βˆ— π‘‘π‘Žπ‘–π‘™π‘¦ π‘’π‘ π‘Žπ‘”π‘’ 𝑖𝑛 π‘šπ‘–π‘›π‘  βˆ— π‘£π‘–π‘‘π‘’π‘œπ‘  π‘‘π‘–π‘ π‘π‘™π‘Žπ‘¦π‘’π‘‘ π‘π‘’π‘Ÿ π‘šπ‘–π‘›π‘’π‘‘π‘’ βˆ— 𝑖𝑛 βˆ’ 𝑓𝑒𝑒𝑑 π‘Žπ‘‘ π‘™π‘œπ‘Žπ‘‘ βˆ— 𝐢𝑃𝑀 βˆ— 365 1000 = π·π΄π‘ˆ βˆ— π‘‘π‘Žπ‘–π‘™π‘¦ π‘’π‘ π‘Žπ‘”π‘’ 𝑖𝑛 π‘šπ‘–π‘›π‘  βˆ— π‘£π‘–π‘‘π‘’π‘œπ‘  π‘‘π‘–π‘ π‘π‘™π‘Žπ‘¦π‘’π‘‘ π‘π‘’π‘Ÿ π‘šπ‘–π‘›π‘’π‘‘π‘’ βˆ— π‘Žπ‘šπ‘œπ‘’π‘›π‘‘ π‘œπ‘“ π‘Žπ‘‘π‘‘π‘–π‘ π‘π‘™π‘Žπ‘¦π‘’π‘‘ βˆ— 100% βˆ— 𝐢𝑃𝑀 βˆ— 365 π‘Žπ‘šπ‘œπ‘’π‘›π‘‘ π‘œπ‘“ π‘šπ‘Žπ‘–π‘› π‘π‘œπ‘›π‘‘π‘’π‘›π‘‘ 1000 βˆ— π‘π‘Ÿπ‘œπ‘šπ‘œπ‘‘π‘–π‘œπ‘› π‘“π‘Žπ‘π‘‘π‘œπ‘Ÿ π‘œπ‘“ 𝐢𝑃𝑀 (4.2) Initial app-opening 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. Here the revenue of initial app-opening advertisements can be calculated as the number of days in a year times the cost per day. πΌπ‘›π‘–π‘‘π‘–π‘Žπ‘™ π‘Žπ‘π‘ βˆ’ π‘œπ‘π‘’π‘›π‘–π‘›π‘” π‘Žπ‘‘ π‘Ÿπ‘’π‘£π‘’π‘›π‘’π‘’ = π‘‘π‘Žπ‘–π‘™π‘¦ π‘Žπ‘‘ π‘‘π‘Ÿπ‘Žπ‘“π‘“π‘–π‘ βˆ— 𝑒𝑛𝑖𝑑 π‘π‘Ÿπ‘–π‘π‘’ βˆ— 365 = π‘›π‘’π‘šπ‘π‘’π‘Ÿ π‘œπ‘“ π‘Ÿπ‘œπ‘’π‘›π‘‘π‘  βˆ— 𝐢𝑃𝑇 βˆ— 365 (4.3) Campaign revenue Campaign revenue incurs on a per time basis – the cost is charged each time when a campaign is held. It can be calculated by multiplying the number of campaigns held per year by cost per campaign. πΆπ‘Žπ‘šπ‘π‘Žπ‘–π‘”π‘› π‘Ÿπ‘’π‘£π‘’π‘›π‘’π‘’ = π‘›π‘’π‘šπ‘π‘’π‘Ÿ π‘œπ‘“ π‘π‘Žπ‘šπ‘π‘Žπ‘–π‘”π‘›π‘  h𝑒𝑙𝑑 π‘π‘’π‘Ÿ π‘¦π‘’π‘Žπ‘Ÿ βˆ— 𝑒𝑛𝑖𝑑 π‘π‘Ÿπ‘–π‘π‘’ (4.4) - 30 -

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