Will TikTok Lite & its point system revolutionize social media business? Comparative study with TikTok user data

TikTok Lite is a video-sharing app that the official TikTok released in 2023 that is “lighter” than the regular TikTok. It is characterized by a small lightning bolt mark in the upper left corner that is added to the original TikTok icon. Users can also engage in “Poi-katsu,” or collect points, by simply watching videos within the app.

TikTok Lite is ranked No. 1 in the Entertainment category in the App Store (as of June 28, 2024). The popularity of TikTok Lite is evidenced by the fact that it beat out many popular apps in Japan such as TVer, ABEMA, and Netflix.

The most significant difference between TikTok Lite and TikTok is the “Poi-katsu" element mentioned at the beginning of this article.

While typical Poi-katsu apps require users to answer questionnaires, physically move around or shop in order to earn points, TikTok Lite allows users to earn points simply by watching videos and giving them a "Like."

In addition, TikTok Lite regularly holds events where users can earn a large number of points, and users can earn more points compared to other Poi-katsu apps. The “minimal effort required to earn points” and “large number of points earned” can be seen as the reason for its popularity.

On the other hand, the posting functions on TikTok Lite are more limited than those on TikTok. To be specific, TikTok Lite does not have the video editing, livestreaming, and monetization functions. Therefore, it is thought that users differ depending to the nature of their use of the app, with the “light” users, who are only looking to watch videos, using TikTok Lite and the users aiming to gain revenue through posting using TikTok.

In addition, the limited posting functions make TikTok Lite considerably lighter in data usage than TikTok. This may have the advantage of making it easier collect points in situations where there is no Wi-Fi, such as when you are on the road.

Next, we will look at the differences between the two apps by comparing the user attributes and other characteristics of TikTok Lite and TikTok users. For the analysis, we will use "Dockpit," an online behavioral analytics tool from VALUES, Inc. that allows you to analyze competitors' websites and research trends using behavior data updated monthly, all within your browser.

First, we will compare the scale of both apps based on the number of users who actually open them. The graph below shows that the monthly active TikTok Lite users have been increasing steadily since its release.

We will take a deeper look at the trends among app users who actually open the app. First, the graph below compares the average number of days per month that the TikTok Lite and TikTok apps are opened.

While 60% of those who open the TikTok app open it on an average of five days or less per month, most active TikTok Lite users open it on an average of 16 days or more per month. TikTok Lite has a large number of heavy users who open the app a high number of times per month as many people want to complete tasks every day in order to earn points.

We will also take a closer look at app users opening the app by gender and age group. The graph below shows the ratio of male to female users of both TikTok Lite and TikTok.

The male to female ratio is close to 1:1 for both apps, indicating that there is not much of a difference in gender.

When looking at user distribution by age groups, the percentage of users in their 20s for TikTok Lite was several points lower than for TikTok.

We also examine the combined use of both TikTok Lite and TikTok apps. The graph below, which shows combined use seen from the perspective of TikTok Lite users, shows that the percentage of users who do not demonstrate combined use (users who use only TikTok Lite) is 46.7%, which accounts for about half of the total users.

So far, we have analyzed the differences between TikTok Lite and TikTok in terms of both the characteristics of the app and their users, including the user attributes and usage behaviors. The table below summarizes the differences between the two apps as revealed by our analysis. In TikTok Lite, the Poi-katsu function may have helped to attract a segment of users who had not previously used TikTok as well as heavy users who open the app daily to earn points.

We will now discuss why TikTok Lite has become so popular in the saturated Poi-katsu market.

One possible reason is the “minimal effort required to earn points” and the “large number of points earned.” As mentioned above, TikTok Lite allows users to earn points easily, and in addition, it regularly holds events that give users the opportunity to earn a large number of points, making it easier to earn more points compared to other Poi-katsu apps.

It may also be influenced by the fact that the main task to earn points is “watching videos.” In the Poi-katsu market, apps what allow you to earn points by simply walking or taking a photo of your receipt have become popular. With this, “watching videos,” which currently accounts for a large portion of users' disposable time, is likely to go hand in hand with the act of accumulating points while doing everyday activities. This may be the reason why TikTok Lite is so popular.

Although the intentions behind the release of TikTok Lite have not yet been officially stated, nonetheless, it has been a great success, attracting a large number of active users and retaining users with the app’s high number of points.

If this precedent proves successful, it is undeniable that major social media such as Instagram and X and platforms such as YouTube may also offer Poi-katsu. There is a great possibility that companies will try to add new value to existing services in order to attract new users.

On the other hand, it can be pointed out that an important aspect of competing in the social media business is the retention of creators in addition to the retention of users. Like YouTube, TikTok creators will be able to receive rewards for the number of views they receive. This system was updated in March 2024, indicating that the platform is also trying to keep creators motivated to keep contributing to the app.

Today, platforms are increasingly competing for users' disposable time. How will each platform devise ways to attract users and creators? It is definitely something we will keep an eye.

▼Data from Dockpit was used in this case study. Dockpit is an online behavior analytics tool provided by VALUES, Inc., and it allows you to access online behavioral data (updated monthly) via your browser so you can research competitor websites and investigate trends. There is a FREE version of Dockpit, so if you are interested in using it, please register below.