FT: TikTok reforms US operations due to digital ad market slowdown
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By data Financial Times (FT), Chinese company ByteDance has begun reorganizing the US operations of its TikTok short video service to deal with falling ad revenue in its largest market. As part of the reorganization, TikTok North America General Managing Partner Sandy Hawkins will take over the U.S. ad and content sales operations.
FT notes that this decision was announced at yesterday’s meeting of the American top management of the company in Austin (Texas). Ms. Hawkins will be temporarily filled by Blake Chandley, who runs TikTok’s international business. “Under Hawkins’s leadership, her team has become a leading player in the global digital advertising market,” said Mr. Chandley. “Therefore, we believe that her experience will be very useful in understanding the needs of clients.” Citing unnamed sources at the company, the FT notes that TikTok’s reshuffling of responsibilities between US and international businesses is only part of a broader reorganization of the company in the US market. As part of the reforms, more than 100 jobs were cut, including about 20 senior managers, who were fired and new ones were appointed in their place.
TikTok’s reorganization comes amid a general slowdown in the U.S. digital advertising market. eMarketer predicts $65.3 billion will be spent on social media ads in the US this year, up just 3.6% from a year earlier. At the same time, in 2021 the digital advertising market in the US increased by 25%.
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