Introduction
Typically associated with digital entertainment, TikTok in Mexico has emerged as a powerful tool that encourages creativity, promotes entrepreneurship, and markets micro, small, and medium enterprises (MiPyMES).
Economic Contribution
In just five years, TikTok’s economic impact in Mexico has grown to a staggering 45,240 million pesos. The platform generates 58,614 direct, indirect, and induced jobs across the country.
Direct Economic Impact
14% of this 45,000 million pesos, equivalent to 6,347 million pesos, represents direct economic spillover. These are incomes, investments, taxes, and purchases of goods and services by TikTok.
Indirect Economic Impact
68% of the impact, totaling 30,825 million pesos, is indirect economic spillover. This represents sales of goods and services by MiPyMES that use TikTok.
Induced Consumption Impact
The remaining 18%, or 8,068 million pesos, is due to induced consumption effects. This includes TikTok’s expenditures and those of the MiPyMES that utilize the platform.
TikTok’s Role in MiPyMES
One out of every five MiPyMES with internet access already uses TikTok. Seventy percent of businesses consider the platform’s primary advantage to be expanding their brand’s reach. Fifty-four percent believe TikTok has been crucial in attracting new customers or generating sales, while 62% say it has strengthened their customer relationships.
Growth and Criticism
Despite criticisms of promoting excessive consumption, superficiality, and risky challenges, TikTok has become a powerful tool creating communities around culture and socially impactful activities.
TikTok’s Position in Mexico’s Digital Economy
With an estimated digital economy value of approximately 40,000 billion dollars in Mexico, TikTok’s exponential growth is evident. It has become one of the most influential social networks in Mexico, growing rapidly since its operations began five years ago.
- Mexico ranks fourth globally in terms of users, surpassed only by the US, Indonesia, and Brazil.
- With over 85 million users aged 18 and above, TikTok has nearly 70% penetration among internet users.
As part of the predominant digital economy, TikTok interacts with e-commerce, digital banking, mobile apps, and other digital platforms. It competes with other user-provider connecting platforms.
The CIU Report
The Competitive Intelligence Unit (CIU) report, led by Ernesto Piedras, sheds light on TikTok’s economic contribution in Mexico. The findings indicate growing penetration among MiPyMES and significant progress in digital economy adoption.
Key Questions and Answers
- What is TikTok’s economic impact in Mexico? TikTok contributes 45,240 million pesos to Mexico’s economy and generates 58,614 jobs.
- What percentage of TikTok’s impact is direct, indirect, and induced? 14% (6,347 million pesos) is direct; 68% (30,825 million pesos) is indirect; and 18% (8,068 million pesos) is induced consumption.
- How many MiPyMES use TikTok? One out of every five MiPyMES with internet access uses TikTok.
- What do businesses think of TikTok? Seventy percent consider TikTok’s primary advantage to be expanding brand reach, while 54% believe it has been crucial in attracting new customers or generating sales. 62% say it has strengthened customer relationships.
