In a groundbreaking achievement, TikTok, the popular short-form video app, has become the first non-game mobile application to generate $10 billion in consumer spending. This remarkable milestone was revealed through an analysis conducted by app intelligence provider data.ai. The report underscores TikTok’s rapid growth and success, solidifying its position as a dominant force in the app industry.
Key Takeaway
TikTok has become the first non-game app to generate
0 billion in consumer spending, a milestone that solidifies its status as a leading player in the app industry.
Record-Breaking Growth:
TikTok began 2023 with an impressive $6.2 billion in consumer spending already under its belt. Throughout the year, it added an additional $3.8 billion, marking a substantial 61% growth. Comparing these figures to the previous year, data.ai highlights a significant 15% increase from 2022’s total of $3.3 billion. Notably, this report only encompasses TikTok’s consumer spending on the Apple App Store and Google Play, excluding third-party Android app stores in China.
In-App Purchases Fuel Success:
The majority of TikTok’s consumer spending comes from in-app purchases of “coins.” Users can acquire these virtual currencies to spend on gifts for their favorite creators on the platform. In turn, the creators are rewarded for their content and can convert these gifts into fiat currency. TikTok retains a 50% share of the payout. The most popular in-app purchase is a bundle of 1,321 coins priced at $19.99, contributing a significant portion of TikTok’s revenue. It is important to note that data.ai’s analysis did not include revenue generated from TikTok’s advertising and e-commerce ventures, such as TikTok Shop.
Major Revenue Contributors:
Data.ai’s findings reveal that U.S. consumers and iOS users in China were the primary drivers of TikTok’s remarkable achievement, accounting for roughly 30% of the in-app spending individually, or a combined 60% of the total revenue. Additional contributing markets include Saudi Arabia, Germany, the United Kingdom, and Japan, which combined accounted for 13% of the app’s in-app purchase revenue.
While TikTok is the first non-game app to reach the $10 billion mark, other non-game apps have also generated billions in revenue. However, they still trail TikTok significantly. Tinder and YouTube, for instance, trail by $2 to $3 billion, highlighting TikTok’s dominance in this aspect.
Future Outlook:
With TikTok’s unparalleled success and the continuous growth in its user base, data.ai predicts that the app’s revenue will continue to surge. The firm anticipates that TikTok’s consumer spending will reach a remarkable $15 billion in 2024, positioning it as the highest-earning mobile app of all time. Lexi Sydow, Head of Insights at data.ai, remarks on the future potential of TikTok by stating, “TikTok is poised to become the highest-earning mobile app ever. Users are spending over $11 million per day on tipping their favorite content creators, propelling TikTok past the world’s most lucrative mobile game to date: the addictive and beloved Candy Crush Saga.”
In conclusion, TikTok’s meteoric rise continues, driven by its innovative platform and the immense popularity of its content creators. As it breaks new ground in the app world, TikTok is rewriting the rules and solidifying its position as a global powerhouse.
