Advertising company engage:BDR’s (ASX: EN1) IconicReach has expanded its influencer marketing to the video sharing app, TikTok.
TikTok is considered one of the largest and fastest growing social platforms, trending closely behind Facebook, Instagram and YouTube. The social app, owned by Chinese startup ByteDance, has over 150 million daily active users.
IconicReach will be starting its first TikTok campaign with influencers in the music space, with the intent of creating a viral dance contest by well-known artists.
Campaigns on TikTok will be readily available for all new brands joining IconicReach, which engage:BDR said would broaden its ability to incrementally increase revenue and contribute to profitability.
The decision to add TikTok into its influencer marketing strategy comes after engage:BDR added four South Korean brands to its commercially-focused IconicReach platform last month.
The TikTok app allows users to record, watch and share 15 second videos, usually lip syncing to popular soundtracks, dancing, or creating comedy skits.
Users can also browse and interact with the content of other users, including liking, commenting and sharing videos with TikTok videos also able to be syndicated to Facebook and Instagram.
According to engage:BDR, TikTok is currently represented by many media authorities as the next Instagram and SnapChat, creating ample branding opportunities.
“As the app continues to grow and gain more users, it may create more opportunities for the company to capitalise on user-brand integrations,” enagage:BDR said.
Engage:BDR said revenue had been tracking substantially better than expected recently, with the first 22 days of April 2019 yielding the strongest revenue for a start of a month in company history, on the programmatic advertising product.
Gross profit margins have sustained the 40-41% range, with the company’s propriety yield management artificial intelligence planned to go live this quarter.
While the company has been focused on accelerating its programmatic publisher activations, engage:BDR disclosed to shareholders today that there had been some minor delays in deploying the committed capital to activate the second group of publishers due to communication delays with international partners.
“Management is confident this round of activations should complete shortly, and updates will be delivered to the market quickly thereafter,” the company added.
Engage:BDR, which has been working diligently to complete the integration of the StartApp programmatic buyer integration, has pocketed about $200 million in revenue since its inception in 2009.
Earlier this year, engage:BDR’s management team published a list of priority activities for the coming 12 months focused around profitability, including new client relationships and ongoing product development.