CapCut, the video editing app owned by ByteDance, has reached a significant milestone, becoming the second app from the company to surpass $100 million in consumer spending, following TikTok. Renowned for its user-friendly templates, seamless integration with TikTok, and swift adoption of AI-driven effects and filters, CapCut consistently ranks among the top 10 or 20 overall apps in the iOS App Store. The company is now expanding its offerings with CapCut for Business, aimed at advertisers and creators.
CapCut for Business focuses on providing essential tools that enable marketers, brands, small businesses, and content creators to produce high-quality ads and branded content. These tools will be accessible across the CapCut app on desktop, mobile, and tablet devices.
Among the features launched is an AI-powered script generation tool that assists advertisers in generating script ideas based on product descriptions. Additionally, users will gain access to thousands of commercially licensed business templates, a smart converter for turning URLs into engaging videos, and more functionalities designed to enhance productivity.
AI plays a pivotal role in CapCut for Business, extending beyond script generation. Marketers can utilize AI-generated presenters to showcase products through demonstrations and explainer videos. Another notable feature, a virtual try-on tool, employs AI models that allow customers to virtually experience products, generating photos to highlight them, making it particularly valuable for e-commerce businesses and apparel retailers.
In contrast to the consumer version, CapCut for Business is built for team collaboration. The software facilitates interaction among users, agencies, and creators, allowing seamless sharing for edits, access, reviews, notes, and suggestions.
While these tools are perfect for creating promotional videos for TikTok and other short-form platforms, they can also be employed to generate organic content, such as videos shared on a brand’s TikTok account.
Launched in 2019 in China under the name JianYing, CapCut has since grown its global user base due in part to its connection with TikTok. As of August 2023, the app boasted 490 million users across iOS and Android worldwide, representing approximately 25% of TikTok's user base. Key markets, including the U.S., U.K., Germany, Egypt, Saudi Arabia, Mexico, and Brazil, have experienced significant download increases in the first half of this year, with CapCut reaching users in 170 countries outside of China.
In the first half of 2023, CapCut outpaced Splice to become the most profitable video editing application globally, generating a remarkable $50 million in revenue. This achievement marks it as ByteDance's second app to achieve over $100 million in global earnings. Data.ai attributes this surge in popularity and revenue to recent AI enhancements, such as templates, effects, and filters. For instance, after the rollout of generative AI features in April, CapCut experienced a spike in downloads followed by sustained revenue growth, according to the firm. ByteDance has also introduced a CapCut plugin for ChatGPT users.
With the new CapCut for Business software, brands, marketers, and creators can now easily create captivating videos tailored for social media platforms, including TikTok, without the high costs associated with advanced video editing software. In select case studies, businesses have reported significant increases in video output, views, and engagement—some even exceeding triple-digit growth—while also achieving lower CPM rates and enhanced online sales. Broader results will emerge as more marketers begin to utilize this innovative software.
CapCut for Business is now available at no cost to brands, marketers, and creators, enabling them to embark on their video production journeys effortlessly.
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