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Given all videos are subjective to the 15-second time limit in Douyin, 32 and 52 minutes would be equivalent to 128 and 208 full clips, respectively. Due to this specific characteristic of the app, we foresaw limited increase of this variable thus neglect its impact in the following analysis. Thus for revenue projection, we set the lower and higher bounds to be 30 and 60 minutes. Number of video clips per minute So far, almost all videos created in and posted on the Douyin platform are under the strict 15-second rule – they must not be more than 15 seconds in length. However, videos of too short length usually have limited ability to tell a story – thus, according to our observations, most videos are around 10 seconds long. Exceptions could be made for accounts with over 1,000 followers and a history of premium UGC, in such cases videos can be up to 60 seconds in length29. However, this is not a common feature – we do not consider it as a determinant factor in assessing Douyin’s potential revenue growth. Although there is a possibility that these accounts would become more common, leading to more longer videos. For revenue projection, we consider the number of video clips per minute to be in a range of 1 to 6 – videos are assumed to be in a length range of 10 to 60 seconds. In-feed ad load Ad load is defined as the ratio of ads to other contents and plays an important role in driving revenue growth of social media companies (Wagner, 2017), examples include Facebook in the Western industry and Weibo in the Eastern market. However, a high ad load poses the risk of losing viewers as it would greatly reduce user experience. Reports has shown that, for instance, Facebook maxed out their ad load around 2017 (Peterson, 2017). In an extremely competitive market, one that Douyin is 29 There is no clear or uniform standard for premium content. Some define it as a 15-second clip with no less than 500,000 likes, some with no less than 1,000,000 likes – as said, there is no uniform standard, the application for eligibility is viewed on case by case basis. - 49 -PDF Image | Analysis of ByteDance with a close look on Douyin TikTok
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