Dive Brief:
- TikTok is bringing its short-form video to out-of-home (OOH) TV screens through a new partnership with Atmosphere, a company that provides commercial businesses with streaming video content, according to an announcement.
- The two have developed a dedicated TikTok channel that tries to capture the best of the app viewing experience while catering to the OOH format. Atmosphere said it has doubled its reach in the past year to cover over 19,000 venues spanning restaurants, bars, gyms and doctors' offices. The startup, which was spun out of Chive Media Group in 2019, has partnerships with brands including Westin, Burger King, Taco Bell and Texas Roadhouse.
- Atmosphere's free, ad-supported platform reaches 20 million unique visitors per month, per the announcement. The partnership shows TikTok trying to broaden the purview of where it engages consumers as it tops 1 billion monthly users.
Dive Insight:
TikTok is taking a bigger crack at the OOH market through a deal with Atmosphere, whose streaming platform supplies curated content to TV screens in commercial spaces like waiting rooms, gyms and restaurants. Despite the COVID-19 pandemic continuing to impact the in-person attendance of such venues in many parts of the U.S., the startup has significantly expanded its network and secured greater financial support. Earlier this week, it announced a $100 million round of funding.
For TikTok, the move presents an opportunity to acquire new users who are entertained by the Atmosphere streams but may not be accustomed to the app's short-form, vertical video format, which is tailored to mobile screens. Atmosphere's content wheelhouse typically focuses on genres like viral video compilations, extreme sports, lifestyle videos, ambient nature footage and entertainment programming, per the announcement.
TikTok has made a concentrated push to position itself to a wider audience beyond the Gen Z set that turned it into a sensation, a strategy that could attract more advertisers in a tightly competitive social media market. Atmosphere also offers dynamic contextual, geographic and demographic targeting tools, underpinning the potential to tap into fresh revenue streams.
"By partnering with Atmosphere, we're excited to make it easy for people to experience TikTok together by bringing the joy and creativity of our platform to new screens, venues, and audiences," said Dan Page, head of global business development for new screens at TikTok, in a press statement.
TikTok has recently made other maneuvers that move it beyond the smartphone. In November, it launched TikTok TV in North America. The service brings its algorithmically-driven For You Page and Following Feeds to internet-connected TV platforms like Amazon Fire TV.
