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3. VideoclipsuploadedinDouyinaresubjectivetoatimelimitof15seconds.Inrealitythe length may vary, as accounts that fulfill certain requirements can apply for extending the limit up to 60 seconds. However, for simplicity reason, here we assume all videos are of a length of 15 seconds, which gives us 4 video clips per minute. 4. In-feed ad load is calculated according to equation (4.4) and the remarks shown in Table 2. πΌπ β ππππ ππ ππππ = ππππ’ππ‘ ππ πππππ ππππ¦ππ β 100% = 1 β 100% β 2.4% ππππ’ππ‘ ππ ππππ ππππ‘πππ‘ 6 β 7 5. Perdefinition,CPMincursforeverythousandviews.Therefore,costperviewiscalculatedto be 0.24 CNY. 6. Table2showstheofficialpricingforadvertisementforDouyin.However,promotionfactor is usually applied in reality. Multiple sources have disclosed that the actual CPM for Douyin deviates from the official listing, we assume here that the actual CPM currently at 60 CNY ($ 8.6)16, giving us a promotion factor of 0.25. As shown in Figure 6, the average CPM worldwide for social media at the end of 2018 is at the level of 6.52 USD, which is roughly 46 CNY17, showing that 60 CNY is within reasonable range and is rather at the higher end of the pricing. We give this 30% premium the price because of Douyinβs increasing popularity and rapid growth of MAU β they offer higher bargaining power as more brands and commercials would like to place ads there to increase exposure and visibility. Thus giving Douyin the power to ask for a possibly higher price. Thus, the promotion factor of 0.25 is used here for further calculation. 7. It is assumed to be 365 days in a year. Leap years, which are calendar years with 366 days, are not considered separately here. 8. Initial app-opening ad is assumed to be requested and displayed all days around the year, with no break. 9. We assume 50 campaigns are held per year by Douyin. 16 Disclosed by internal staff of Douyin to media. 17 In this thesis, the foreign exchange rate for USD/CNY is assumed to be fixed at 7(1 USD = 7 CNY, 1 CNY = 0.14 USD), long-term, unless otherwise stated. - 33 -PDF Image | Analysis of ByteDance with a close look on Douyin TikTok
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