Mobile app development company AppsVillage Australia (ASX: APV) has secured a strategic partnership to launch its small-to-medium business advertising campaign management system Jarvis on global social media platform TikTok.
The company today announced it had signed an agreement with TikTok Pte Ltd (Singapore) for an initial 12-month period to enable its SMB customers to advertise on TikTok’s self-serve platform launched in July to encourage and increase the sector’s advertising spend and reach.
Under the agreement, TikTok will grant AppsVillage and Jarvis access to a secured application programming interface (API), which will connect them to TikTok’s platform and enable the advertising process to be fully-automated, fast and scalable.
TikToK’s API will allow AppsVillage to expand the use of Jarvis within the TikTok advertising platform and provide an optimised solution for approximately 4,500 paying business customers to quickly and easily create and manage intelligent online advertising and promotional campaigns.
Customers will be charged advertising fees by AppsVillage with the company set to typically achieve a gross profit on every advertisement made through Jarvis for TikTok.
While exact numbers have not been disclosed, it is anticipated to be an increase of up to 30% of the amount charged by TikTok to AppsVillage.
AppsVillage said the popularity of TikTok and its ability to drive revenue for small-to-medium businesses means it should see material revenue over time from the new partnership.
TikTok is a video-sharing social media app launched in 2017 by Beijing-based tech company ByteDance which allows users to create, edit, and share short-form video clips jazzed up with filters and accompanied by the latest music trends.
Taking the honour of the world’s most downloaded app in August 2020, it currently has over 800 million users worldwide, 400 million active daily users in China and more than 110 million users in the US alone.
According to an online research sample study of 100,000 user profiles, TikTok maintains some of social media’s highest levels of user engagement worldwide.
Since its June launch, the Jarvis platform has delivered strong results for AppsVillage and has been compared by the company to having a “highly-experienced advertising manager working in-house”.
Approximately 2,550 campaigns have been placed through the intelligent advertising tool, and these are believed to have produced a 300% increase in new leads as “interested customers” via Facebook’s Messenger service compared to leads generated through a traditional approach.
Jarvis has reduced AppsVillage customer cost-per-lead by nearly 50% from $7.50 to $3.80, and increased the total number of Facebook ads by 30% in the four weeks to end October.
SMBs across the US, UK, Canada and Australia in sectors such as shopping, retail and beauty and cosmetics are believed to have shown the highest Jarvis effectiveness, doubling the number of monthly ads placed through the platform.
As a result of the “groundbreaking success” in its few months of operation, Jarvis was recently launched as a standalone product for non-subscribers and is expected to provide an additional revenue stream for AppsVillage.