TikTok brings content, ads to Redbox
TikTok is expanding its reach via the Redbox DVD rental kiosk network.
The video-focused social network is partnering with advertising platform Crackle Connex and Redbox, both Chicken Soup for the Soul Entertainment companies, to provide content which will be featured on over 3,000 video screens on top of Redbox kiosks nationwide.
In addition, brands will have the opportunity to advertise alongside TikTok content displayed on Redbox kiosk screens. Numerous retailers, including Walmart, have previously partnered with TikTok.
Other recent examples include a Sephora initiative that will connect TikTok creators to select beauty brands, with the goal of helping them learn social content strategies through a series of educational training modules; as well as Chipotle promoting a new perk in its loyalty program with a TikTok competition.
According to the Q1 2023 Consumer Trends Report from e-commerce platform Jungle Scout, 43% of surveyed Gen Z consumers start their online product searches on TikTok, a higher number than those who start on Google.
“TikTok is the go-to destination for short-form video consumption by over a billion people globally,” said Philippe Guelton, chief revenue officer of Crackle Connex. “This new partnership provides advertisers a unique opportunity to reach new audiences and drive engagement. Our Redbox kiosks are in high-traffic locations where millions of people frequently shop, such as grocery stores or value retailers. We look forward to working with TikTok on expanding this partnership as our DOOH network expands.”
"People come to TikTok to experience the entertainment, joy, and creativity of our community and we are excited to expand that experience to Redbox kiosks," said Dan Page, head of global distribution, new screens at TikTok. "This partnership allows us to bring together the power of our exceptional content with the high-visibility of Redbox kiosk locations, creating an effective and fresh approach to advertising."
TikTok attracts government attention
The Biden administration has been consistently continuing to express serious regulatory concerns, which began under the Trump administration. Citing possible connections between TikTok parent company ByteDance and the Chinese Communist Party, the Trump administration had been actively attempting to ban TikTok from operating in the U.S. unless it established a separate business with at least partial U.S. ownership.
In December 2022, Sen. Marco Rubio (R-FL) introduced bipartisan legislation to ban TikTok from operating in the United States. And in May 2023, Montana Gov. Greg Gianforte signed legislation that will make Montana the first state in the U.S. to completely ban any mobile app store from providing TikTok to any users in the state. The ban, set to take effect Jan. 1, 2024, focuses on app providers rather than app users, who do not face any penalty or punishment under its terms.
Both TikTok and the Chinese government have publicly denied any security risks for U.S. users. However, TikTok may be taking a new look at creating a separate U.S. operation that would include Walmart and Oracle.