A new report by app analytics firm Data.ai reveals that TikTok has become the fifth app to surpass the $10 billion consumer spending milestone. The company also stated that the social media application owned by ByteDance is the first and only non-gaming application that managed to enter the $10 billion spending club.
TikTok shares the stage with Candy Crush Saga ($12 billion), Honor of Kings ($11 billion), Monster Strike ($10.6 billion) and Clash of Clans ($10.2 billion). Social video app generates $3.8 billion in revenue in 2023; This figure is approximately 15 percent higher than in 2022, when in-app purchases will be $3.3 billion.
It’s worth noting that it took TikTok 79 months to reach its initial goal of $1 billion, while other gaming apps achieved this in 20 months or less. On the other hand, it took only 22 months for TikTok to grow from $1 billion to $5 billion and 15 months to go from $5 billion to $10 billion, while other applications progressed at a slower pace.
If we talk about other non-gaming apps, YouTube and Tinder are the ones following TikTok’s footsteps. Data.ai says both apps generate about $7.5 billion in revenue from in-app purchases, trailing TikTok by $2 to $3 billion.
China and the US are the moneymakers for TikTok, with each capturing around 30 percent of in-app purchases. These two markets, which account for $6 billion of the app’s total consumer spending, are followed by Saudi Arabia, Germany, the United Kingdom and Japan.
While TikTok does not offer a premium access tier like Snapchat, one of the ways it makes money is through TikTok Coins. Users can purchase this virtual currency and spend it on virtual gifts to support their favorite content creators during live broadcasts.
Creators earn diamonds based on the value of their gifts, which they can redeem after reaching a minimum threshold. TikTok generally keeps about 50 percent of the payment amount for itself. Data.ai says TikTok’s $19.99 coin bundle, which comes with 1,321 coins, is the most popular in-app purchase in 2023, accounting for nearly a quarter of the app’s in-app purchase revenue. The analytics firm predicts TikTok will reach $15 billion in consumer spending by 2024.
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