Question
A viral growth loop is a strategy where a product or service is marketed primarily through the network effects of existing users. In the case of TikTok, when users post their TikTok videos on other platforms, these videos are shared with all of that user's followers. This creates a loop where more and more people are exposed to TikTok, leading to exponential growth. For every user TikTok acquired through ad spend, it was estimated that they gained an additional 6.4 users due to this viral growth loop. This effectively reduced the cost of acquiring a new customer, contributing significantly to TikTok's success.
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As TikTok videos get posted on another platform, they are shared with all that users' followers. The Growth data scientist Justin Hilliard estimated that Tiktok acquired 6.4 additional users for every user that it acquired with that one billion ad spend. Hilliard found that this viral growth loop returned $0.20 of additional ad dollars TikTok didn't have to pay for a new customer with every dollar spent on ads. That is true viral lead gen.
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