Inside TikTok: Culture, strategy, monetization, and more | Ray Cao

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: www.lennysnewsletter.com/p/in...
Where to find Ray Cao:
• LinkedIn: / jiayiraycao
Where to find Lenny:
• Newsletter: www.lennysnewsletter.com
• X: / lennysan
• LinkedIn: / lennyrachitsky
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
Referenced:
• TikTok: tiktok.com/
• Google Shopping: shopping.google.com/
• Eugene Wei’s blog: www.eugenewei.com/
• TikTok and the Sorting Hat: www.eugenewei.com/blog/2020/8...
• How Netflix builds a culture of excellence | Elizabeth Stone (CTO): www.lennyspodcast.com/how-net...
• Inside OpenAI | Logan Kilpatrick (head of developer relations): www.lennyspodcast.com/inside-...
• Brian Chesky’s new playbook: www.lennyspodcast.com/brian-c...
• Lead with Context not Control: www.svpg.com/lead-with-contex...
• Shuba on TikTok: / tiktokbrownchick
• Duolingo on TikTok: / duolingo
• Duolingo leagues: duolingo.fandom.com/wiki/League
• CapCut: www.capcut.com/
• Amanda Talijan (silent baby item reviews) on TikTok: www.tiktok.com/@amanda_talija...
Production and marketing by penname.co/. For inquiries about sponsoring the podcast, email [e-mail].
Lenny may be an investor in the companies discussed.

[@lvernon9471]

I loved him discussing how TikTok is more for top of funnel and brand awareness. That’s been my belief about the system. Get eyes on your product/company with TikTok and make different content for the other platforms.

[@viktoriialiashenko627]

Okey, you sold me Duolingo. Thank you for the interview.Lots of insights🔥

[@Julieskvz]

Thank you so much for this episode. I am new to TikTok and this was really helpful. 🙏🏻

[@katetyshchenko1806]

Great episode Lenny! PS never been comment # 1 😀😀

[@user-jb6th2bb4h]

Loved this episode. Learnt a new concept Context, not control, gonna dig deep in it now.

[@Nashadelicable]

So glad to see this, considering how pervasive TikTok is, it’s amazing how little we know about its working

[@Girl-splain]

Love this episode!

[@user-zu4pm2lr8s]

He actually understands diversity and customer centric, not just technology or engineering centric🎉

[@user-rd8mf7cz7p]

Meta ads delivery algo is trying to find who has the best intent to watch or convert and it doesn’t tie to your friends

[@user-rd8mf7cz7p]

The algo comment on Meta, it is wrong