2 Analysis of Douyin's profit model

.1 Advertising revenue

Douyin and brands sign advertising agreements offline, insert advertisements at irregular intervals between videos, and use big data and cloud computing to accurately recommend favorite advertisements to users, thereby enhancing the publicity effect and achieving product sales. Not only that, Douyin also provides major brands with dedicated official Douyin accounts and product promotions, and uses public accounts to increase product exposure. If users like it, they can follow, learn about product updates, and place orders to purchase. Advertising is an agreement between the Douyin platform and e-commerce and advertising platforms. The amount of advertising is one of the important factors that directly determine Douyin's profitability. Relevant data shows that Douyin's advertising revenue in 2018 was 18 billion yuan, and in 2019, Douyin's advertising revenue reached 60 billion yuan, with a growth rate of 233%.