TikTok, renowned for its short-form video content, achieves a historic milestone as the first non-gaming mobile application to surpass $10 billion in consumer spending across the Apple App Store and Google Play. This revelation comes from a recent analysis by app intelligence provider data.ai, emphasizing TikTok’s unique standing in the competitive app landscape with over 1 billion monthly active users in 2021.
The analysis underscores the pivotal role of in-app purchases on TikTok, particularly the virtual currency known as “coins”, in propelling consumer spending. TikTok’s success story includes commencing 2023 with a robust base of over $6.2 billion in consumer spending, witnessing an additional $3.8 billion throughout the year, marking a significant 61% growth from the year’s start. This figure notably surpasses the 15% increase from 2022, where total consumer spending amounted to $3.3 billion.
Crucially, data.ai’s report focuses on TikTok’s consumer spending across iOS and Google Play, excluding third-party Android app stores in China. The platform’s revenue primarily stems from users’ in-app purchases of “coins,” a virtual currency enabling the acquisition of gifts for content creators. These gifts, serving as a form of reward, can be converted into fiat currency, with TikTok retaining 50% of the payout. Notably, the most popular in-app purchase on TikTok is a bundle of 1,321 coins priced at $19.99, constituting a quarter of the platform’s revenue.
The regional breakdown of TikTok’s in-app spending reveals that U.S. consumers and iOS users in China significantly contributed, collectively driving around 60% of the total revenue. Other notable markets, including Saudi Arabia, Germany, the U.K., and Japan, played a substantial role, contributing 13% to the in-app purchase revenue.
Lexi Sydow, Head of Insights at data.ai, commented on TikTok’s trajectory, highlighting its potential to become the highest-earning mobile app ever, approaching the $15 billion milestone in 2024. Sydow emphasized that consumers are spending over $11 million per day tipping their favourite content creators, surpassing even the lucrative mobile game Candy Crush Saga.
In conclusion, TikTok’s unprecedented success in consumer spending, fueled by in-app purchases and a rapidly growing user base, positions it as a trailblazer in the non-gaming app category. The platform’s trajectory suggests the likelihood of achieving further financial milestones in the coming years.
