AUSTRALIA TheSocio-EconomicImpactofTikTok inAustralia April2024 AboutOxfordEconomicsAustralia OxfordEconomicsAustraliaisaleadingeconomicadvisoryfirm.FollowingtheacquisitionofBISShrapnelin2017,OxfordEconomicsAustraliahaveunparalleledcapabilitiesinhelpingclientstonavigatelocaleconomicissuesinthecontextoftheglobaltrendsshapingtheworldeconomy. OxfordEconomics,theparentcompany,wasfoundedin1981asacommercialventurewithOxfordUniversity’sbusinesscollegetoprovideeconomicforecastingandmodellingtoUKcompaniesandfinancialinstitutionsexpandingabroad.Sincethen, wehavebecomeoneoftheworld’sforemostindependentglobaladvisoryfirms,providingreports,forecastsandanalyticaltoolsonmorethan200countries,100industries,and8,000citiesandregions.Ourbest-in-classglobaleconomicandindustrymodelsandanalyticaltoolsgiveusanunparalleledabilitytoforecastexternalmarkettrendsandassesstheireconomic,socialandbusinessimpact. HeadquarteredinOxford,England,withregionalcentresinNewYork,London,Frankfurt,andSingapore,OxfordEconomicshasofficesacrosstheglobeinBelfast,Boston,CapeTown,Chicago,Dubai,Dublin,HongKong,LosAngeles,MexicoCity,Milan,Paris,Philadelphia,Stockholm,Sydney,Tokyo,andToronto.Weemploy450staff,includingmorethan300professionaleconomists,industryexperts,andbusinesseditors—oneofthelargestteamsofmacroeconomists andthoughtleadershipspecialists.Our globalteamishighlyskilledinafullrangeof researchtechniquesandthoughtleadershipcapabilitiesfromeconometricmodelling,scenarioframing,andeconomicimpactanalysistomarketsurveys,casestudies,expertpanels,andwebanalytics. OxfordEconomicsisakeyadvisertocorporate,financialandgovernmentdecision-makersandthoughtleaders.Ourworldwideclientbasenowcomprisesover2,000internationalorganisations,including leadingmultinationalcompaniesandfinancialinstitutions;keygovernmentbodiesandtradeassociations;andtopuniversities,consultancies,andthinktanks. April2024 AlldatashownintablesandchartsareOxfordEconomicsAustralia’sowndata,exceptwhereotherwisestatedandcitedinfootnotes,andarecopyright©BISOxfordEconomicsPtyLtdtradingasOxfordEconomicsAustralia. ThisreportisconfidentialtoTikTokandmaynotbepublishedordistributedwithouttheirpriorwrittenpermission. Themodellingandresultspresentedherearebasedoninformationprovidedbythirdparties,uponwhichOxfordEconomicsAustraliahasreliedinproducingitsreportandforecastsingoodfaith.Anysubsequent revisionorupdateofthosedatawillaffecttheassessmentsandprojectionsshown. AUSTRALIA Contents ExecutiveSummary 04 1.Introduction 06 2.TikTokasanEnablerofBusinessGrowth 08 2.1ProfilingBusinessesonTikTok 09 2.2HowBusinessesUseTikTokforAdvertisingandMarketing 15 2.3TheBenefitstoBusinessesofUsingTiktok 21 3.TheEconomicImpactofBusinessesUsingTikTokforAdvertisingandMarketing 26 3.1TheImpactofBusinessActivityontheAustralianEconomy 27 3.2TikTokasaDriverofBusinessGrowth 32 4.TikTok’sCommunityofUsers 36 4.1WhoUsesTikTokandWhy? 36 4.2HowTikTokCreatesImpactfromthePlatform 52 5.AppendixA–EconomicImpactofAustralianBusinessesMethodology 58 3 ExecutiveSummary $1.1b ContributiontoGDPsupportedbybusinessadvertisingandmarketingonTikTokinFY23. TikTokisaglobalentertainmentplatform,andoneoftheworld'smostpopulardestinationsforwatching,creating,andsharingcontent.ReleasedoriginallyinSeptember2017,ithasexperiencedrapidgrowthinrecentyears,benefitingfromhighengagementwithusersaged16to44.TikTokhas beenparticularlywellreceivedbyconsumersintheAustralianmarket.Itisthefourthmostuseddigitalplatforminthecountry1with8.5m.Australianusers,2whichequatesto33.6%ofallAustralianinternetusers.3 38% Theshareofuserswhohavepurchasedaproductorservicerecommendedontheplatforminthepastmonth. TikTok’sreach,itsbreadthofcontent,anditsemphasisonuserengagementpresentanopportunityforbusinessesacrossAustraliainabroadrangeofsectorstousetheplatformasaninnovativeroutetogrowth.Theplatformrecentlyannounced350,000businessusersinAustralia.4Businesses,ofallsizesandcategories,areincreasinglyusingTikTokasachannel toreachnewcustomersandmarkets.Infact,nearlyhalfofbusinessesthatreportedusingTikTokformarketingandadvertisingpurposes,usedtheplatformatleastonceperday.TikTok’suniquerecommendationsystemthatfocusesonuserengagementandinterests,asopposedtonumbersoffollowers,allowsforbothnewandestablishedbusinessestotapintopopulartrendsandculturewithouttheneedforexorbitantmarketingresources. ThisresearchaimstoprovideanevidencebaseonhowTikTokcreatesvalueforbusinessesandusersinAustralia.Indoingso,itconsidershowusersinteractwithTikTokbothontheplatformandofftheplatforminwaysthatimpactbusinessesandcommunities.TheresearchalsoconsidersthevalueusersplaceonTikTokandcontributestoevidenceonthediversityoftheTikTokplatform,bothintermsofitsusersandbusinessownersactiveonTikTok. TheeconomicimpactofbusinessesusingTikTokasaplatformforgrowth OurmodellingsuggeststhatbusinessventuresandinvestmentsinadvertisingandmarketingonTikTokgenerated $1.0b.indirectrevenueforAustralianbusinessesin2022-23(FY23).Takingintoaccountflowoneffectsacrossthe economyasaresultofthisrevenueboost,theplatform’sGDPcontributionwas$1.1b.in