TikTok-owner ByteDance is expected to generate at least 180 billion yuan ($27.2 billion) in advertising revenue in China this year, which would cement the company's No. 2 position in the country's digital advertising market, Reuters reported on Wednesday.
Douyin will contribute nearly 60 percent of ByteDance's ad revenue, followed by news aggregator Jinri Toutiao (20 percent) and long-video platform Xigua Video (less than 3 percent), the report said, citing a source.
In overseas markets, previously embroiled in controversy, TikTok is still in the early stages of monetization despite rapid growth in user data, contributing very little to ByteDance's revenue.
Sources also said ByteDance plans to increase investment in three key businesses next year, including e-commerce, search, and long-form video, as it continues to expand into global markets.
According to the report, the company plans to invest a total of 10 billion yuan in Xigua Video next year, aiming to increase the number of daily active users to more than 100 million.
Previous media reports have said ByteDance's overall revenue target for 2020 is around $30 billion, meaning that advertising revenue in China will account for the majority of its total revenue.
ByteDance overtook Baidu in the first half of 2019 to become China's second-largest digital advertising company, accounting for 23 percent (about $7.6 billion) of total digital ad spend in China, according to previous data from consulting services firm R3. Alibaba ranked first, with $10.9 billion in revenue and a 33 percent market share. But the gap between the two sides is closing fast this year.
Bloomberg previously reported that ByteDance is in talks with investors about a round of funding totaling $2 billion. When the financing is completed, ByteDance will be valued at $180 billion.