Core Insights - TikTok is developing a SmartTV version aimed at major platforms like Samsung, Roku, and FireTV, indicating a strategic shift towards becoming a full video platform rather than just a social media app [1][2] - The company is targeting the growing Connected TV (CTV) advertising market, which is seeing a significant budget shift from mobile and traditional TV to CTV [8][9] - TikTok's entry into the CTV space is seen as a direct challenge to YouTube, which currently dominates the CTV advertising budget in the U.S. [3][4] Group 1: Market Dynamics - In 2024, an estimated 150 million people in the U.S. will use CTV to access YouTube, which has captured nearly 25% of the CTV ad budget [4] - Recent data shows that U.S. advertisers are now spending 43% of their CTV marketing budgets on YouTube, surpassing mobile ad spending for the first time [5] - The CTV advertising expenditure is expected to grow at a double-digit rate, with projections indicating a 16.8% increase by 2025, reaching $33.48 billion [15] Group 2: TikTok's Strategy - TikTok is likely to adopt a low-price strategy to penetrate the CTV market, leveraging the expanding CTV advertising budget [11][12] - The company may also explore revenue-sharing agreements with OEMs for pre-installation on smart TVs, similar to strategies used by Netflix and YouTube [21][29] - TikTok is expected to utilize a "light copyright" approach, focusing on short video content and partnerships rather than acquiring expensive IP rights [39][40] Group 3: Measurement and Data - To gain advertiser trust, TikTok plans to enhance its measurement capabilities, collaborating with Nielsen to provide unified reporting across different media [48][50] - The company aims to quantify the value of its advertising, making it easier for brands to compare TikTok's performance against competitors like YouTube [51][52] - TikTok's strategy involves a three-step approach: entering the market with lower CPMs, providing verifiable data, and gradually increasing prices as trust is established [52][53]