TikTok, the global sensation in short-form video content, has broken barriers once again, soaring past the $10 billion mark in consumer spending, a groundbreaking achievement for a non-game mobile application according to Techcrunch. A recent analysis conducted by app intelligence provider data.ai, TikTok has become the first non-game app to achieve this milestone across both the Apple App Store and Google Play Store combined.
The app, which previously reached the remarkable milestone of 1 billion monthly active users in 2021, has continued its meteoric rise by notching up an astounding $10 billion in consumer spending. This places TikTok among the elite league of top-grossing mobile apps, surpassing renowned gaming giants like Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans.
The report unveils TikTok’s staggering financial growth, revealing that the app commenced 2023 with over $6.2 billion in consumer spending. Subsequently, throughout the year, TikTok amassed an additional $3.8 billion, marking an impressive 61% growth from the year’s start and a substantial 15% increase from 2022’s total consumer spending, as disclosed by data.ai.
Remarkably, the spending frenzy stems primarily from TikTok’s in-app purchases of “coins,” a virtual currency enabling users to shower creators with gifts. These gifts serve as tokens of appreciation for creators’ content and can be converted into fiat currency, with TikTok retaining 50% of the payout. The most popular in-app purchase, a bundle of 1321 coins for $19.99, contributes a significant quarter of TikTok’s revenue.
Notably, the bulk of in-app spending driving TikTok’s monumental achievement originates from U.S. consumers and iOS users in China, individually accounting for approximately 30% of the revenue or 60% of the total when combined. Other key markets such as Saudi Arabia, Germany, the U.K., and Japan collectively contributed 13% of TikTok’s in-app purchase revenue.
Lexi Sydow, Head of Insights at data.ai, expressed enthusiastic projections about TikTok’s future, foreseeing a potential leap towards surpassing the $15 billion milestone in consumer spending by 2024. She highlighted the immersive engagement of TikTok users, predicting an increase in their monthly time spent within the app and positioning TikTok to potentially outshine the revenue of Candy Crush Saga.
With its trajectory pointing skywards, data.ai predicts TikTok’s revenue to continue its upward trajectory in 2024, potentially reaching a monumental $15 billion in consumer spending, solidifying its reign as a titan in the mobile app landscape.