As the media entertainment industry enters the cold winter mode, dark clouds hang over the advertising market, only TikTok advertising revenue has increased significantly.

TikTok is the only major social media platform that has seen a significant increase in advertising revenue this year, thanks to growing market share, according to industry statistics. WPP's advertising revenue doubled in 2022, according to a report released Dec. 4 by GroupM, a media investment company owned by TikTok.

Advertising spending on social media is up 4 per cent year-on-year this year, down from 36 per cent in 2021, according to Magna, a unit of IPG Mediabrands. The agency said it expects social media advertising spending to grow by 7% in 2023.

Luke Stillman, senior vice president of Magna, saidUsers have been gradually attracted by vertical short videos, and advertisers will continue to pay attention to short video marketing in the future.

TikTok's headwind growth in advertising revenue has benefited from the amount of time American users spend on TikTok, and TikTok firmly leads the ranking of time spent on social networks.. American users spend about 30 hours a month on TikTok, compared with 8 hours on Instagram and 16 hours on Facebook Inc.

In the third quarter of this year, YouTube's advertising revenue fell for the first time in three years, to $7.07 billion from $7.2 billion a year earlier. At the earnings conference in February, META CEO Zuckerberg mentioned several times that TikTok would be listed as a competitor, with advertising revenue of $27.24 billion in the third quarter of this year, down 3.8% from $28.28 billion in the same period last year.

The media expects TikTok's advertising revenue to approach the $12 billion mark in 2022, which may surpass the combined performance of Twitter and Snapchat. TikTok's annual advertising revenue is only $5 billion less than YouTube's this year, and that figure will be flat in 2024.

At the same time, the recent turmoil on Twitter has further consolidated TikTok's advertising market share, with many advertising and marketing employees being laid off as a result of Twitter's "massacre" layoffs, resulting in a disconnection between Twitter and advertisers. Coupled with Musk's so-called "free speech", advertisers packed up and ran away one after another.

At present, GM, Ford, Audi, Pfizer Inc, Oreo maker Mondelez International Inc and Haagen-Dazs maker General Mills have all suspended advertising on Twitter, and United Airlines has joined in.

In November, market research firm Omdia predicted that online video advertising would generate more than $331 billion in revenue in 2027, with TikTok accounting for 37 per cent of that. TikTok's advertising revenue may exceed the video advertising revenue of META and YouTube combined.

But no matter how good the ad numbers are, TikTok also cut its revenue forecast. In early November, the media quoted people familiar with the matter as saying that Zhou Jieyi, TikTok's chief executive, cut his full-year revenue target by 20 per cent at a meeting in late September. TikTok adjusted revenue to nearly $10 billion from a previous estimate of between $12 billion and $14.5 billion.