Business Analysis Report:

FYP Algorithm Optimization

​

Peipei Liu

​

This analysis is unrelated to TikTok Inc. or its real data; it is based on a simulated database for personal study.

Business Context & Objective

As a Business Analyst on TikTok's Strategy & Operations team for FYP Algorithm Optimization, your goal is to enhance AI-driven content recommendations that drive watch time, interactions, and monetization.

​

Based on these two sets of simulated TikTok user activity data and video data, please extract data-driven recommendations to improve TikTok's recommendation system and revenue model.

Agenda Slide

● Analysis Approach/Framework

● Business Opportunity 1: Boost Engagement

● Business Opportunity 2: Increase Watch Frequency

● Business Opportunity 3: Maximize Monetization

● Key Recommendations Slide

● Q&A

Analysis Approach

Key Growth Areas:

1. Boost Engagement – Identify the Most Engaging Content Categories and Creators with the Highest Engagement Rate

2. Increase Watch Frequency – Find Peak Usage Hours for Content Consumption

3. Maximize Monetization – Identify Which Content Generates the Highest Ad Revenue

1. Boost Engagement

Key Formulas:

Total Watch Time = Total Views × Avg. Watch Duration

Engagement Rate = (Likes + Shares + Comments) / Total Views

Among the Top 10 Most Engaging Content Categories based on Total Watch Time (Sec) and Engagement Rate (%), categories like Gaming, Music, Dance, and Comedy show the highest engagement rates and watch durations, indicating strong audience retention and interaction.

​

​

​

• Recommendations:
• Boost visibility for Gaming, Music, Dance, and Comedy to maximize engagement.

​

• A/B test content weighting—prioritize high-engagement (Music, Dance, Comedy) while keeping high-watch-time (Gaming) balanced.

​

• Personalize ranking—recommend Gaming/Music to long-session users and Dance/Comedy to highly engaged users.

​

Top 10 Most Engaging Content Categories

Top 4 Creators with the Highest Engagement Rate

Recommendations: Encourage trending creators to boost user engagement and prioritize their videos in FYP recommendations.

Engagement Rate: 36857.1

No.1 Creator_id: 5020

Engagement Rate: 36052.6

​

No.2 Creator_id: 5038

​

Engagement Rate: 35707.3

​

No.3 Creator_id: 5043

​

Engagement Rate: 35652.2

​

No.4 Creator_id: 5021

​

2. Increase Watch Frequency

Key Formula:

DAU= ∑ Unique Active Users per Day

Optimizing TikTok Engagement: Identifying Peak User Activity Hours

The analysis shows that 8 AM is the peak engagement hour over the past 7 days, with the highest average DAU.

To capitalize on this trend, we should schedule key content releases, push notifications, and promotional campaigns around 8 AM to maximize user engagement. Additionally, testing engagement strategies at 1 AM and 1 PM (the next highest hours) could help optimize secondary engagement windows.

3. Maximize Monetization

(Ad performance)

Key Formula:

CTR= (Impressions/Clicks​)×100

Maximizing Ad Performance: Insights from CTR Analysis�

Comedy, Gaming, and Dance have the highest CTR, indicating strong ad engagement. Music, Fashion, and Sports also perform well, while Cooking and Beauty need optimization.

Recommendations:

1. Prioritize high-CTR categories for premium ad placements and interactive ads.

2.Optimize low-CTR categories by testing different ad formats and storytelling techniques.

3.A/B test ad formats to refine targeting and engagement.

Key Recommendations

1. Boost Engagement 🎯🔥

Prioritize Gaming, Music, Dance, and Comedy for visibility.

Prioritize trending creators’videos in FYP recommendations.

2. Increase Watch Frequency ⏰📲

Schedule key content releases, push notifications, and promotions at 8 AM to maximize engagement, while testing strategies at 1 AM and 1 PM to optimize secondary engagement windows.

3. Maximize Monetization💰📈

Prioritize high-CTR categories for premium ad placements and interactive ads.

Optimize low-CTR categories by testing different ad formats and storytelling techniques.

​

Thank You�( Q&A)