CapCut, the video editing app owned by ByteDance, has achieved a remarkable milestone, becoming the company’s second app to exceed $100 million in consumer spending, following the success of TikTok. It is now venturing into the realm of business tools. While it is renowned for its user-friendly templates, seamless integration with TikTok, and its swift adoption of AI effects and filters, CapCut has solidified its position as a top consumer video editing app, consistently ranking among the top 10 or 20 apps on the iOS App Store. The latest development sees the introduction of CapCut for Business, an expansion tailored for advertisers and creators.
CapCut for Business focuses on equipping marketers, brands, small businesses, and content creators with tools to generate advertisements and branded content. These resources will be accessible across the CapCut platform on desktop, mobile, and tablets. The offerings include an AI-powered script generation tool that assists advertisers in devising scripts based on their product or business descriptions, a vast array of commercially licensed business templates, a clever tool to convert product or landing page URLs into video content, and more.
AI plays a pivotal role in this new service beyond just generating ad scripts. CapCut for Business also offers the ability to access AI-generated presenters who can effectively showcase a company’s products through demos and explanatory videos. Furthermore, a virtual try-on feature employs AI models to enable customers to virtually try on products and generate photos highlighting the merchandise, primarily targeting e-commerce and apparel businesses.
In contrast to the consumer-oriented app, CapCut for Business is designed for team collaboration. It facilitates teamwork, allowing users to collaborate with team members, agencies, and creators. Users can be granted permission to edit, access, review, or provide notes and suggestions.
While these tools can be beneficial for businesses looking to create promotional videos for platforms like TikTok and other short-form video outlets, they can also be employed for creating organic content, such as videos posted on a brand’s TikTok account.
Originally launched in China in 2019, CapCut expanded its presence globally and gained popularity due to its affiliation with TikTok. As of August 2023, it had amassed 490 million users on iOS and Android devices worldwide, accounting for approximately 25% of TikTok’s user base. Notable markets outside of China include the United States, the United Kingdom, Germany, Egypt, Saudi Arabia, Mexico, and Brazil, all of which have witnessed substantial growth in downloads during the first half of the year.
CapCut also outperformed Splice to become the most profitable video editing app globally in the first half of 2023, raking in a record-breaking $50 million in revenue, making it ByteDance’s second app to surpass $100 million in global earnings. This surge in adoption and revenue is attributed to the recent integration of AI features such as templates, effects, and filters. With the addition of generative AI templates and effects in April, CapCut experienced a surge in downloads and sustained revenue growth.
ByteDance is now positioning CapCut as a tool for both consumers to create engaging social media content, particularly on TikTok, and for marketers to do the same without the need for expensive video editing software. In specific case studies, CapCut has reported that business users managed to significantly increase their video production, views, and engagement, often achieving triple-digit percentage improvements. In some instances, they also reduced the average cost per mille (CPM) and boosted online sales. Wider real-world results will become more evident as the software is adopted by more marketers.
The new CapCut for Business software is now available to brands, marketers, and creators at no cost, starting today.
