JAKARTA Short video apps are now at the center of attention in the annual presentation of technology and social media companies to advertisers, where platforms like Snap and Meta are trying to take advantage of TikTok's political uncertainty in the United States to seize advertising dollars from their competitors.
The presentation, held in New York and known as NewFronts, comes just a week after US President Joe Biden signed a law that provides Chinese technology company ByteDance with one year to release TikTok, or the app will be banned in the US for national security reasons. TikTok itself has vowed to fight the legislation.
The short video platform announced a new partnership in sports and entertainment at its NewFront event on Thursday evening May 2, including a deal with broadcaster NBCUniversal to post footage of the Paris Olympics this summer on TikTok.
TikTok is expected to generate an ad revenue of 8.66 billion US dollars (Rp138.2 trillion) in the US this year according to estimates from research firm Emarketer. Although only a small part of Google and Meta, TikTok is starting a short video trend and encouraging competitors to build similar features.
"The focus of TikTok should show advertisers that everything is going as usual, although it really isn't," said Emarketer principal analyst Jasmine Enberg.
On Wednesday, May 1, Snap, the owner of the Snapchat photo messaging app, also announced a partnership with NBCUniversal to send popular influencers to the event to create content. They will also feature the top concert footage of the promoter of the Live Nation show.
"Our current focus is on ensuring we are reliable and viable platforms," Patrick Harris, president of Snap for America and partnerships.
The focus on this professionally produced video is designed to attract brands that are alert to the negative impact of social media or content generated by artificial intelligence (AI).
"The brands have to spend a little more time really thinking about the quality of the environment, which is why the content partnership that is being formed is very important," said Robert Silver, head of media at digital marketing firm Marijufish.
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Meta, owner of Facebook and Instagram, focuses its NewFront on Reels, their TikTok competitor who now accounts for half of the time users spend on Instagram.
"Instagram Reels will benefit from the TikTok ban, and Meta wants to ensure that they can attract all users and potential income that may be affected," said Enberg of Emarketer.
Google said on Monday April 29 that their short video feature called YouTube Shorts is increasingly being watched on TV screens apart from cell phones.
Despite uncertainty over TikTok's future, advertisers say they intend to focus on the short term and some plan to continue advertising until it is no longer possible.
"I think we need to focus and try to understand what innovations are available to advertisers," said Alex Stone, senior vice president of agency partnerships at media buying company Horizon Media, referring to NewFront TikTok.
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