TikTok Resorts To Cash Incentives To Attract New Users

TikTok Resorts To Cash Incentives To Attract New Users

It appears that TikTok is increasingly worried about maintaining its growth momentum, as evidenced by its latest efforts to attract new users.

A recent report from The Information reveals that TikTok has been trying to entice new users in the U.S. through a promotion offering discounts for inviting friends from other apps.

Lia Haberman, an expert in the creator economy, also noticed this new promotion within the app, which provides incentives for inviting popular YouTube and Instagram creators to join TikTok.

This new TikTok incentive program rewards users with Amazon gift cards if they can get YouTubers with over 10,000 followers and Instagram users with 100,000 followers to sign up for TikTok.

This strategy might come across as a bit desperate, suggesting that TikTok could be struggling for growth, resorting to financial rewards and discounts to attract new users.

There may be truth to this, as various reports indicate that TikTok’s growth has plateaued or even declined in some regions. The app reached a billion users in 2021 but hasn’t provided any official updates on its active user count since then. Although external reports predicted TikTok would surpass 1.5 billion users in 2022, challenges such as regional restrictions (notably in India) have prevented the platform from confirming this milestone, and it hasn’t reported much on its growth since.

Based on the data it has shared, it’s evident that TikTok’s growth has slowed.

In the U.S., where TikTok is also facing the threat of a ban, it currently has 170 million users, up from 150 million in March 2023. In Europe, its DMA disclosures show that TikTok added just 6 million users between October 2023 and April 2024.

TikTok’s explosive growth has clearly slowed, and these new initiatives suggest that its decline may be ongoing. This could explain why TikTok now feels compelled to pay people to try the app in an attempt to rekindle user interest.

TikTok has tried similar strategies in Europe, such as its “TikTok Lite” program, which offered incentives for continued usage of the app.

For instance, in this example, users in France are informed (in French) that they can earn points by discovering and liking videos within the app.

TikTok initially launched the program in France and Spain on a limited basis, but it caught the attention of EU officials, who raised concerns that it might violate the DSA. As a result, TikTok has since canceled the initiative to avoid potential EU fines. However, the very existence of such programs hints at a platform that’s increasingly anxious about its relevance and ongoing appeal.

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