TikTok has surged ahead in user spending, reaching a staggering $10 billion and establishing itself as the first non-gaming mobile application to achieve such financial prowess. Data.ai reveals that TikTok, boasting 1 billion monthly active users in 2021, now stands alongside gaming giants like Candy Crush Saga and Honor of Kings.
The report outlines TikTok’s remarkable journey, starting 2023 with $6.2 billion in user spending and accelerating to an additional $3.8 billion, marking a remarkable 61% year-over-year increase. Notably, this figure surpasses 2022’s $3.8 billion by 15%, solidifying TikTok’s status as a formidable player in the app revenue landscape.
TikTok’s unique spending dynamics revolve around its virtual currency, “coins,” used for purchasing gifts for creators. These gifts serve as tangible rewards for content, with a set of 1,321 coins priced at $19.99 emerging as the most popular in-app purchase, constituting a quarter of overall user spending.
Geographically, the United States and iOS users in China take the lead in contributing to TikTok’s revenue, each accounting for around 30% of the total. Following closely are key markets including Saudi Arabia, Germany, the UK, and Japan, collectively contributing 13% to the platform’s in-app shopping revenue.
While Tinder and YouTube rank high in user spending among non-gaming apps, TikTok’s unparalleled success sets it apart, leaving competitors in the dust. Projections from Data.ai indicate that TikTok’s spending spree is far from over, with estimates reaching a remarkable $15 billion in 2024. As TikTok continues to reshape the digital landscape, its financial achievements solidify its position as a global powerhouse in user engagement and spending.