The Power of Content Network Effect: TikTok's Unique Advantage

The Power of Content Network Effect: TikTok's Unique Advantage

TikTok, the Chinese music/video app, has managed to demonstrate a new concept called "content network effect" that sets it apart from other platforms. Unlike traditional social media platforms where each piece of content adds value to the overall network, TikTok takes it a step further. Each video uploaded to the app makes every future potential video more valuable, creating a bottomless well of inspiration. This unique concept of "content network effect" has made TikTok difficult to copy.

One of the key factors that contribute to TikTok's success is its focus on facilitating remixes. By allowing users to remix existing content, TikTok lowers the bar for producing user-generated content. Users don't have to be astoundingly creative or original to make something entertaining. Each individual's life experiences inform their perspective, allowing them to interpret an idea in a new way. TikTok provides the creative tools and a vast library of content to remix, making it the ultimate creative tool.

On the other hand, Instagram, owned by Facebook, has focused on building the interest graph. The interest graph is even more valuable than the social graph, as it provides insights into user interests and preferences. However, building an interest graph is challenging due to the open nature of the web and the ease of gaming the system. Instagram, with its walled-garden approach, has been able to generate higher-efficacy signals about user interests through first-party data and quality control.

While a social graph provides direct interactions between users, an interest graph relies on approximations to understand user interests. This difference makes it harder to curate content based on user interests. Instagram faces technical challenges in translating data from visual content into interests, and its algorithmic curation in the "Explore" tab is a work-in-progress.

To preserve the sanctity of its platform, Instagram only populates the main feed with content from people users follow directly. It also does not allow users to repost into their friends' feeds. However, Instagram still faces challenges in inhibiting the propagation of undesirable information. The platform can overcome this by refocusing on its entertainment niche and delving deeper into providing consumer and entertainment information. Clickable links serve no purpose in this context, as Instagram's primary aim should be to entertain its users.

Mark Zuckerberg, Facebook's CEO, recognized the need to segregate user-generated content from organic brand interactions to preserve the app's focus on person-to-person communications. Similarly, Instagram should predominantly aim to entertain its users rather than inform them. By embracing its entertainment niche, Instagram can create a unique value proposition for its users and differentiate itself from other platforms.

While some have suggested adding navigable URL links to Instagram, it goes against the platform's vision and value proposition as the first killer app for the interest graph. Instead of retreating back to the safety of Facebook's social graph, Instagram should embrace the opportunity to explore new frontiers. By focusing on entertainment and providing quality content, Instagram can continue to attract users and maintain its relevance in the ever-evolving social media landscape.

In conclusion, TikTok's concept of "content network effect" and Instagram's focus on the interest graph highlight the importance of creating value through content and user interests. While TikTok's remixability offers a unique creative tool, Instagram's walled-garden approach provides higher-efficacy signals about user interests. Three actionable advice for both platforms would be: 1) Embrace and nurture the unique features that set them apart from competitors, 2) Continuously improve algorithms and curation systems to enhance user experiences, and 3) Focus on their core value proposition and cater to the specific needs and preferences of their user base. By following these recommendations, TikTok and Instagram can continue to thrive and adapt to the ever-changing social media landscape.