TikTok, the short-form video platform, has surged past the $10 billion mark in user spending, placing it in a league shared only by mobile gaming giants. According to data.ai, TikTok has become the first non-gaming mobile application to achieve this financial milestone, joining the ranks of gaming titans like Candy Crush Saga, Honor of Kings, and Clash of Clans.
TikTok’s ascent in 2023 saw a remarkable surge from an initial $6.2 billion to a staggering $10 billion, marking a 61% year-over-year increase. This figure, which exceeds the 2022 total by 15%, solidifies TikTok’s position as a major player in the mobile app economy. Notably, the reported spending encompasses transactions on the Apple App Store and Google Play, with third-party Android app stores in China excluded from the analysis.
The preferred mode of transaction on TikTok is through “coins,” a virtual currency enabling users to purchase gifts for content creators. Despite the platform deducting a substantial 50% commission from payouts, the most popular in-app purchase remains a bundle of 1,321 coins priced at $19.99, constituting a quarter of all user spending.
Breaking down the spending demographics, U.S. consumers and iOS users in China emerged as the primary contributors, each accounting for approximately 30% of the revenue. Other significant markets include Saudi Arabia, Germany, the UK, and Japan, collectively contributing 13% of TikTok’s in-app shopping revenue.
While other non-gaming apps such as Tinder and YouTube have notable user spending, TikTok’s meteoric rise to $10 billion underscores its unparalleled success in the realm of digital consumer engagement. As the platform continues its upward trajectory, data.ai predicts that TikTok’s user spending will escalate to reach an impressive $15 billion in 2024. The short-form video sensation is undoubtedly leaving an indelible mark on the mobile app landscape.