Inside TikTok: Culture, strategy, monetization, and more | Ray Cao (Global Head of Monetization Product Strategy and Operations)

Lenny's Podcast: Product | Growth | Career

Lenny Rachitsky

Technology, Business, Entrepreneurship

5 • 1.5K Ratings

🗓️ 7 March 2024

⏱️ 72 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Ray (Jiayi) Cao is the global head of product strategy and operations for monetization product at TikTok. Prior to TikTok, Ray spent six years at Google helping scale Google Shopping globally. In our conversation, we discuss:

• TikTok’s internal culture and core values

• How TikTok’s product team operates

• How working at TikTok is different from working at Google

• How TikTok rolls out to new markets

• TikTok’s core principle of “context, not control”

• How their sales and product teams work together

• Lessons (and mistakes) from building TikTok’s early go-to-market team

• The importance of hiring for quality rather than quantity

• Insights on being successful on TikTok as a creator, a business, and an advertiser

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Find the full transcript at: https://www.lennysnewsletter.com/p/inside-tiktok-culture-strategy-monetization

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Where to find Ray Cao:

• LinkedIn: https://www.linkedin.com/in/jiayiraycao/

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

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In this episode, we cover:

(00:00) Ray’s background

(04:55) Cultural differences between Google and TikTok

(08:24) Fine-tuning the algorithm for different markets

(12:15) Examples of fine-tuning the algorithm

(15:11) Core principles and values of TikTok

(19:34) Hiring at TikTok

(21:38) Embracing the “always day one” mentality

(25:09) Collaboration between teams

(28:38) Amazon’s cultural influence

(31:14) Setting up the product organization for speed and innovation

(35:38) Building the go-to-market team

(40:18) What makes people successful at TikTok

(43:02) Thoughts on putting in long hours

(44:40) OKRs and planning at TikTok

(49:12) Tips for how to be successful on TikTok

(53:49) Tips for advertising on TikTok

(01:04:03) Getting started with TikTok Ads

(01:08:42) Common mistakes to avoid with TikTok advertising

(01:09:44) Ray’s favorite TikTok account

(01:10:54) Where to find Ray

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Referenced:

• TikTok: https://tiktok.com/

• Google Shopping: https://shopping.google.com/

• Eugene Wei’s blog: https://www.eugenewei.com/

• TikTok and the Sorting Hat: https://www.eugenewei.com/blog/2020/8/3/tiktok-and-the-sorting-hat

• How Netflix builds a culture of excellence | Elizabeth Stone (CTO): https://www.lennyspodcast.com/how-netflix-builds-a-culture-of-excellence-elizabeth-stone-cto/

• Inside OpenAI | Logan Kilpatrick (head of developer relations): https://www.lennyspodcast.com/inside-openai-logan-kilpatrick-head-of-developer-relations/

• Brian Chesky’s new playbook: https://www.lennyspodcast.com/brian-cheskys-new-playbook/

• Lead with Context not Control: https://www.svpg.com/lead-with-context-not-control/

• Shuba on TikTok: https://www.tiktok.com/@tiktokbrownchick

• Duolingo on TikTok: https://www.tiktok.com/@duolingo

• Duolingo leagues: https://duolingo.fandom.com/wiki/League

• CapCut: https://www.capcut.com/

• Amanda Talijan (silent baby item reviews) on TikTok: https://www.tiktok.com/@amanda_talijan/video/7321700482018233642

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Lenny may be an investor in the companies discussed.

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Transcript

Click on a timestamp to play from that location

0:00.0	We rarely get a peek into what it's like to work at TikTok.
0:03.0	What are some core principles or values or just how TikTok operates?
0:07.6	The number one thing is context, no control.
0:09.9	That's really why we're always encouraging people to sync themselves as a business owner.
0:14.0	You give them all the information they need and then let them just do things without specific instructions.
0:18.6	How do you actually solve the puzzle by connecting all the dots together?
0:21.4	Just like how I see some of my friends, their kids playing Legos.
0:25.2	If you don't really see the full picture,
0:26.7	you won't be able to make the Lego as a one thing
0:28.9	at the end of a day.
0:29.5	You have to see the other pieces.
0:30.9	What else are important cultural values of Tik-Dok, of how Tik-Dok operates that everyone always
0:34.9	has in mind when they're building?
0:36.0	We always have this mentality.
0:37.4	We are a startup.
0:38.7	We are a young company.
0:40.1	We always hunger for growth.
0:41.4	And a very reactive way is like like how can I run my second
0:44.4	half of my marathon faster than the first half.
0:49.4	Today my guest is Ray Taub. Ray is the global head of monetization product strategy
0:55.6	and operations at Tik-Tok, where he's been for over four years.
0:59.6	Prior to Tik-Tok, Ray spent six years at Google,
	...

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