(JustPatriots.com)- Snap CEO Evan Spiegel discussed how China-owned TikTok has quickly dominated the online video business while speaking at the Code Conference in Los Angeles.
Spiegel said that what nobody had anticipated in the United States was the level of investment that ByteDance made into the U.S. market and, of course, in Europe because it was just unimaginable — no startup could afford to invest billions and billions and billions of dollars in user acquisition like that around the world. This was his explanation as to how Communist China has dominated social media. It’s been through seemingly limitless spending.
Spiegel was told by Scott Galloway, a marketing professor at NYU Stern and co-host of the Pivot podcast, that “it just feels like they are knocking the snot out of everybody.”
Because of the enormous sum of money funding TikTok and its corporate owners, ByteDance, Spiegel stated that the app had dominated the online video content market. According to Spiegel, the size of TikTok’s investment is why it has been so difficult for businesses to respond domestically and internationally.
Spiegel said that no company could afford to invest billions and billions and billions of dollars in user acquisition like that around the world. It wasn’t an innovation-led plan; it was about financing large-scale user acquisition, according to one technology business. “It was a fundamentally different strategy than any technology company had envisioned.”
According to Spiegel, TikTok’s recommendation algorithm has grown highly effective due to the app’s massive user base. He said TikTok earned this incredible lead early on by aggressively growing, investing a tremendous amount of money so that users can train the algorithm and ultimately end up with a much more tailored feed that’s harder to acquire on a new site.
He said Snap would compete with TikTok by emphasizing relationships with friends and family rather than random users and strangers.
A recently filed lawsuit claims that the algorithm of China-owned TikTok intentionally favors black youths over white teens when showing them violent content. The allegation is a component of a case concerning the passing of Englyn Roberts, a 14-year-old black girl. Additionally named as defendants in the complaint are Facebook, Snapchat, and ByteDance, the parent firm of TikTok.
The complaint is the most recent in a long line that accuses social media corporations of encouraging teen addiction to their services and platforms. TikTok is allegedly aware of prejudices in its algorithm regarding race and socioeconomic class.
