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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 — Brought to you by: • WorkOS—The modern API for auth & user identity: https://workos.com/lenny • Eppo—Run reliable, impactful experiments: https://www.geteppo.com/ • OneSchema—Import CSV data 10x faster: https://oneschema.co/lenny Find the full transcript at: https://www.lennysnewsletter.com/p/inside-tiktok-culture-strategy-monetization Where to find Ray Cao: • LinkedIn: https://www.linkedin.com/in/jiayiraycao/ Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • X: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/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: 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 Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com. Lenny may be an investor in the companies discussed.

Lenny RachitskyhostRay (Jiayi) Caoguest
Mar 6, 20241h 12mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Inside TikTok: Culture, speed, and winning with ads at scale

  1. Lenny chats with Ray Cao, TikTok’s Global Head of Monetization Product Strategy and Operations, about how TikTok operates internally and how businesses can succeed on the platform. They dive into TikTok’s core cultural principles—especially “context, not control” and “always day one”—and how those values shape hiring, org design, and cross-functional collaboration. Ray contrasts TikTok with Google and US-born tech companies, emphasizing global-first product strategy and tight alignment between product, engineering, and sales. The conversation then shifts to practical advice for creators and advertisers on TikTok, including creative strategy, testing cadence, common mistakes, and why TikTok should be treated differently from Meta and Google.

IDEAS WORTH REMEMBERING

5 ideas

Emphasize context over control to move fast and break silos.

TikTok gives teams rich context about goals and problems, then expects proactive thinking rather than top-down tasking. People are encouraged to think like business owners, connect dots across domains, and collaborate reactively once they’ve formed strong perspectives.

Maintain an “always day one” mindset, even at massive scale.

TikTok deliberately operates like a hungry startup—encouraging direct access to leadership, frequent re-orgs, and constant iteration. This helps preserve urgency and innovation as the company grows, though it can feel chaotic to people used to more stable environments.

Treat global expansion as on-the-ground work, not just an algorithm problem.

While TikTok’s recommendation system is powerful, Ray stresses that real global success comes from hiring local teams, deeply understanding culture and behavior, and fine-tuning product and content strategies market by market (e.g., food content in Japan vs. shopping discovery in the US).

Hire for curiosity, discipline, and prioritization—and don’t compromise on quality.

Ray candidly admits that early pressure to hire fast led to lowering the hiring bar, which ultimately slowed the org. The people who thrive at TikTok are naturally curious, can handle ambiguity, are disciplined in execution, and can ruthlessly prioritize in a high-velocity environment.

Keep product, engineering, and sales tightly coupled through shared rituals.

TikTok runs large cross-functional “doc-reading” meetings (up to ~180 people) where PMs, engineers, data scientists, and sales review the same documents, comment in-line, and align on decisions. PMs and engineers also regularly join client meetings to “feel the heat” directly.

WORDS WORTH SAVING

5 quotes

The number one thing is context, not control.

Ray Cao

We always have this mentality we are a startup, we are a young company, we’re always hungry for growth.

Ray Cao

If you don’t understand the culture, you won’t be able to understand the behavior over there.

Ray Cao

Join a startup and join a rocket ship is a lifestyle. It is not necessarily a job you’re working on from 9 to 5.

Ray Cao

TikTok is the content graph. It’s very different from the other two, and it requires a different way to optimize.

Ray Cao

TikTok’s culture and core operating principles (context not control, always day one)Differences between TikTok and other tech giants like Google and AmazonGlobal-first product development and local market fine-tuningOrg structure, cross-functional collaboration, and planning/OKRs at TikTokHiring philosophy, performance, and what profiles thrive (or don’t) at TikTokHow creators and brands can succeed with organic content on TikTokHow advertisers can effectively run and optimize TikTok ad campaigns

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