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As the technology revenue season ended, one of the constant themes became the weakness of the digital advertising market.

The war in Ukraine, rising inflation, changes in Apple’s privacy and a general decline in advertising spending help explain why Facebook, Google, Amazon and Twitter reported disappointing revenue figures this week, and Snap last week.

But there is another threat that is growing every day: TikTok.

According to Insider Intelligence, the app for short viral videos has grown in popularity, becoming last year the third largest social network in the world after Facebook and Instagram Targets.

Advertisers are watching.

“Across the industry, short-term video continues to take up a lot of the time,” Atlantic Equities analysts wrote in a note Thursday. “First and foremost, TikTok has been managing and benefiting from this trend, with some concern that it has created a competitiveness challenge for Meta.”

TikTok is owned by Chinese company ByteDance, which is reportedly valued at $ 140 billion. Insider Intelligence estimates that this year TikTok will have 755 million monthly users worldwide, and claims that its market share in social media this year will exceed 20% and approach 25% by 2024.

The target said Wednesday that Facebook advertising revenue rose just 6.1% in the first quarter, the slowest growth in the company’s 10-year history as an open company. Total revenue lagged behind analysts’ estimates, as did the company’s forecast for the second quarter, when sales could fall from a year earlier.

Facebook has a product called Reels that competes with TikTok in the short video market. The company told investors that 20% of the time on Instagram is already spent on Reels, and 50% of the time on Facebook – on videos that are “monetized at lower rates” than the main products.

“Over the past few years, mobile networks have become faster, and now video is the main way people experience online content,” Facebook CFO Dave Wenner said during a call about earnings. “The short video is the latest iteration of this, and it’s growing very fast.”

In the annual Alphabet report, the company recognized ByteDance as a competitor on social media along with Meta, Snap and Twitter, as well as a competitor in digital video services, where there are also offers from Amazon, Apple, Disney and Netflix.

Alphabet’s results for the first quarter of this week lagged behind estimates, largely due to a big miss on YouTube, which was supposed to grow 25% but increased only 14%. Executives said consumers are spending more time on YouTube Shorts, which has grown to 30 billion views in the quarter, four times more than a year ago.

“Concerns of TikTok competition”

YouTube is testing ad formats on Shorts, but meanwhile analysts are lowering growth forecasts. Stifle lowered its estimate for YouTube’s second-quarter growth rate to 10% from 13%, and Cowen Equity Research lowered its forecast to 7.5% from 19.7%.

“We believe the revenue results have been largely excellent, but not enough to allay growing investor anxiety about the recession, and growing concerns about TikTok’s competition after YouTube missed again, and more closely than before,” they wrote. BMO Capital Markets analysts in a note on Wednesday. They recommend buying stocks.

Last week, Snap reported disappointing results, and CEO Evan Spiegel told investors that the quarter “turned out to be more difficult than we expected.” And on Thursday, Twitter did not reach revenue for the first quarter. The company has not offered any comments as it is in the process of acquiring Ilona Mask.

Then there is Amazon.

Unlike large social networking platforms, Amazon is not so clearly tied to TikTok. Advertisers are usually brands that promote their products on the dominant e-commerce site and in Amazon programs.

However, even the fast-growing Amazon advertising business did not turn out to be analyst estimates, up 23% from a year earlier to $ 7.88 billion. According to StreetAccount, Wall Street expected $ 8.17 billion.

“The pandemic and the ensuing war in Ukraine have brought extraordinary growth and caused problems,” Amazon CEO Andy Jesse said in a statement, referring to the company’s wider slowdown.

The ads didn’t appear much in the company’s earnings report. This was a much more significant topic elsewhere.

“We hear that there is concern that TikTok is a competitor to YouTube’s mobile position,” said Michael Nathanson, an analyst at MoffettNathanson, head of Alphabet during the company’s call.

“The Bears are likely to point to YouTube’s weakness, which coincides with growing concerns about changing interactions and growing monetization at TikTok,” Loop Capital analysts said.

Alan Gould of Loop talked about it with Facebook executives.

“Have you been quite open about TikTok’s competition issues that seem to be affecting the whole industry now,” Gould said during the call. “Any way to quantify how much you think TikTok affects Facebook?”

Venus advertised a home-grown Facebook product.

“I think it’s obvious that the short video is a huge opportunity for the industry as a whole, and we’re very happy with Reels’ offer and the opportunity for us to compete for market share and time,” Venus said. “Obviously other competitors have such strong offerings as TikTok, but we are pleased with what we have gained from Reels and the efforts we are making to develop this important product.”

WATCH: The real story of Meta’s earnings is Zuckerberg’s ambitions in the metaworld

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