Social app and video platform TikTok had around 656 million global users in 2021 and is projected to reach 755 million users this year. According to Putnam Research, “Generation Z and Millenials make up about 60% of TikTok users.”.

While TikTok has been famous for entertainment and e-commerce, investment content has become one of the most-viewed topics on the platform. This shows that young people are seeking information on personal finance and starting to grow their financial portfolios. Here’s what you need to know about how TikTok is shaping the future of investing.

The Rise of TikTok Finfluencers

Putnam Research says “21% of financial advisors are using TikTok for business.” With many young adults turning to social media to learn about personal finance and how to earn more money, comes the rise of TikTok financial influencers or finfluencers. Investopedia defines a finfluencer as “someone who shares their knowledge and expertise on specific financial topics, primarily on social media” ranging from personal finance, entrepreneurship space, and budgeting concepts, to trade stock tips and investing in cryptocurrency.

Finfluencers establish their credibility by solving problems and sharing tips and information in the most digestible way. They make money through partnerships or selling educational products. While you can find plenty of bad and dangerous information about finance, the stock market, and investing on TikTok, there are actually many finfluencers that offer the best financial news and advice on the platform. Just make sure to stay clear of finfluencer red flags.

How Reliable Is Financial Information on TikTok?

As with making any financial decision, research remains incredibly important. While free financial advice could be very appealing we should remain cautious and aware of which advice to follow and avoid. Here are some financial influencer red flags that you should take note of according to Investopedia:

  1. Influencers that make promises that are too good to be true, using terms such as “foolproof”, “guaranteed”, or “no fail.” Be cautious with those who promise to help you get rich quickly with little to no effort.
  2. Hard selling and a lot of sales pitches – Genuine influencers care about helping their followers improve their financial situation.
  3. Influencers that cannot show you proof of how they achieved success. You can check trusted sources like the Internal Revenue Service (IRS) or U.S. Securities and Exchange Commission (SEC).
  4. Influencers constantly pushing paid promotions
  5. Many followers, little engagement
  6. Requesting for money or gift cards before providing content, product, or service

Emerging video-investing app Zeed combines TikTok’s video-style content and traditional stock trading service. It is also looking to legitimize content by verifying creators and fact-checking videos.

Marketing and Advertising on TikTok

Even big tech companies like Google, Apple, and Microsoft showcase their brands through TikTok because they know it’s the best way to reach younger consumers. They use this platform to share humanized, relatable content that can set them apart from other brands.

Some of the challenges in crafting a TikTok marketing strategy is having the time and money to produce videos consistently. This means needing a marketing team that can create content with speed and quality.

Global One Media is also on TikTok! Follow us for the most recent highlights of the current industry leaders in the small and mid-cap stock market: Global One Media TikTok.

The information and content mentioned in Global One Media’s blog are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort. The content found in this blog is for general information only and was created for exclusive distribution on Global One Media’s network. Global One Media presented information that was available to them at the time of writing, for informational purposes only and is not intended as investment advice. Global One Media has no investment relationship at all with any entities discussed in the blog. Investors should seek financial advice before making any investment decisions.