TikTok has just become the first non-gaming app to rake in an impressive $10 billion in consumer spending, as reported by data.ai. This year, the app has crossed the $1 billion mark for earnings during Q1 to reach $10 billion by the end of the year.
TikTok joins rank of highest-grossing apps
TikTok joins an exclusive club of top-grossing mobile apps, including Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans, all of whom have also crossed the $10 billion revenue milestone.
What’s all the more noteworthy is TikTok’s growth story, with a remarkable 61% increase in consumer spending throughout 2023, surpassing its 2022 earnings by a whopping 15%. Impressively, TikTok even outshone heavyweights like Tinder and YouTube, maintaining a substantial lead of $2 to $3 billion in revenue.
Source: data.ai
The boom in revenues is driven by the US and iOS users in China, both contributing around 30% each, forming a substantial 60% chunk of the app’s total earnings. Notable contributors to TikTok’s coffers also include Saudi Arabia, Germany, the United Kingdom, and Japan, collectively chipping in about 13% of the app’s in-app purchase revenue.
The secret sauce behind TikTok’s financial success?
It’s none other than TikTok coins, a virtual currency. Users opt for one-time in-app purchases, with the popular 1,321 coins bundle at $19.99 leading the way, constituting a whopping quarter of the app’s IAP revenue. These coins are used by users to lavish virtual gifts on content creators, fostering a vibrant ecosystem of digital giving.
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Looking forward, TikTok’s financial future appears brighter than ever, with a projected $15 billion in consumer spending expected in 2024. This forecast, coupled with TikTok’s diversified revenue streams, including in-app advertising and the recent addition of TikTok Shop for eCommerce, firmly positions TikTok as a frontrunner in the race to become the world’s highest-earning mobile app.
Source: data.ai
According to Lexi Sydow, Head of Insights at data.ai, “TikTok’s extraordinary success is set to scale new heights, inching closer to the $15 billion milestone in 2024. The app’s innovative monetisation strategies and user engagement showcase its potential to outshine even the most lucrative mobile games, establishing a new industry standard.”
Key takeaways
- TikTok joins elite club: Becomes first non-gaming app to hit $10 billion in consumer spending
- TikTok coins fuel growth: Virtual currency, virtual gifting, and diverse revenue streams contribute to success
- Bright future ahead: Projected $15 billion consumer spending in 2024 cements TikTok’s lead in mobile app earnings
