TikTok has achieved a groundbreaking milestone by becoming the first non-game mobile application
TikTok, the popular short-form video app, has achieved a groundbreaking milestone by becoming the first non-game mobile application to surpass $10 billion in consumer spending across both the Apple App Store and Google Play. This achievement, as reported by app intelligence provider data.ai, adds another dimension to impressive growth, having already reached 1 billion monthly active users in 2021.
As of the beginning of 2023, TikTok had already amassed over $6.2 billion in consumer spending, and throughout the year, it added an additional $3.8 billion, marking a remarkable 61% growth from the year’s commencement. This figure not only outstrips 2022’s total of $3.3 billion by 15% but also highlights exponential rise in the realm of non-game mobile apps.
It is noteworthy that the analysis by data.ai solely encompasses TikTok’s consumer spending on iOS and Google Play, excluding third-party Android app stores in China. This suggests that the actual consumer spending on TikTok might be even higher.
The primary source of TikTok’s consumer spending stems from in-app purchases of “coins,” a virtual currency allowing users to buy gifts for their favorite creators on the platform. These gifts serve as a form of reward for creators and can be converted into fiat currency, with TikTok retaining 50% of the payout. Notably, the most popular in-app purchase is a bundle of 1,321 coins, priced at $19.99, constituting a quarter of TikTok’s revenue.
Major contributors to TikTok’s monumental achievement are U.S. consumers and iOS users in China, accounting for approximately 30% of the revenue individually or 60% when combined. Other markets, including Saudi Arabia, Germany, the U.K., and Japan, collectively contributed 13% to the app’s in-app purchase revenue.
While TikTok stands as the sole non-game app to breach the $10 billion mark, other non-game apps like Tinder and YouTube generate billions but trail TikTok by $2 to $3 billion, according to the report.
Lexi Sydow, Head of Insights at data.ai, anticipates TikTok’s continuous ascent, projecting it to approach the $15 billion milestone in 2024. She highlights that consumers are currently spending over $11 million daily on tipping their favorite content creators, propelling TikTok beyond the revenue of Candy Crush Saga, the world’s most lucrative mobile game. Sydow predicts that TikTokers will spend an estimated 40-hour work week each month in the app by the end of 2024, reflecting a 22% increase from 2023.
In summary, data.ai predicts a continued growth trajectory for TikTok in 2024, anticipating consumer spending to reach $15 billion.
