Introduction
While digital platforms are typically viewed as sources of entertainment, a surprising revelation has emerged from the robust methodology and quantitative results of the report “Socioeconomic Contribution of TikTok in Mexico” by The Competitive Intelligence Unit (The CIU). This study not only highlights TikTok’s entertainment value but also sheds light on its impact in economic, job creation, and business growth dimensions.
Economic Contribution
According to the report, TikTok contributed 45,240 million pesos (mdp) to Mexico’s economy by 2024, considering its direct, indirect, and induced effects. The direct economic impact amounted to 6,347 mdp through incomes, salaries, investments, taxes, and purchases from suppliers by TikTok. Indirect economic effects totaled 30,825 mdp, primarily from additional sales generated for small and medium-sized enterprises (MiPyMEs) using TikTok as a promotional channel. Furthermore, induced effects on consumption of goods and services reached 8,068 mdp, resulting from spending by TikTok employees and MiPyMEs on the platform.
Benefits for Users
Beyond macroeconomic figures, TikTok serves as a learning space, cultural diffusion platform, and content discovery hub. The report reveals that 63% of users have acquired relevant skills or knowledge due to TikTok. Culturally, 7 out of 10 users claim that TikTok has expanded their access to culture and art, acting as a facilitator for cultural experiences.
- Entertainment Transformation: 87% of users say TikTok has helped them discover music, movies, series, or new content creators.
- Consumption Boost: 56% of users find TikTok advertising useful for acquiring products or services, while two-thirds trust positive reviews available on the platform.
- Local Business Support: 58% of users have visited a local establishment motivated by recommendations seen in the app, making TikTok a bridge between the digital and physical worlds.
TikTok as a Catalyst for MiPyMEs
The impact is even more pronounced for MiPyMEs, as one in five internet-accessible Mexican MiPyMEs already uses TikTok as part of their promotional strategies for products and services.
- Brand Expansion: 7 out of 10 MiPyMEs highlight brand reach expansion as the primary advantage, while 62% emphasize strengthened customer relationships.
- Direct Consumer Contact: Immediate consumer feedback and brand loyalty creation have become valuable intangible assets.
- Sales Impact: Over half of the MiPyMEs (54%) acknowledge that TikTok has been crucial in attracting new customers or generating additional income. Moreover, 2 out of 10 businesses have expanded thanks to growth opportunities provided by the platform.
- Future Growth Plans: 7 out of 10 businesses plan to increase their presence on TikTok, recognizing it as essential for expanding growth opportunities.
Conclusion
In summary, TikTok has solidified its position as a central driving force in Mexico’s digital economy. Its ability to generate added value, positively impact users’ lives, and serve as an essential ally for MiPyMEs transforms it into much more than a content platform. It becomes a convergence point for culture, knowledge, consumption, and business opportunities.
