TikTok is the first non-game app to surpass $10 billion in customer expenditure.

TikTok’s short-form video app is reaching a significant milestone. According to a recent analysis by app intelligence provider data.ai, the app has achieved a remarkable milestone. It has become the first non-game mobile app to generate a staggering $10 billion in consumer spending across the Apple App Store and Google Play combined. This achievement is even more impressive considering that the app already boasts 1 billion monthly active users as of 2021. Only a select few apps have managed to achieve such remarkable success, with Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans leading the pack. These games have generated billions of dollars in revenue, solidifying their status as top earners in the industry.
The report highlights the impressive financial performance of TikTok in 2023. The platform began the year with a substantial $6.2 billion in consumer spending and experienced a remarkable growth of 61%, adding an additional $3.8 billion throughout the year. According to data.ai, the figure is also 15% higher than the total of $3.3 billion in 2022. Just for your information, the report only covers TikTok’s consumer spending on iOS and Google Play, excluding the third-party Android app stores in China. That suggests TikTok’s overall consumer spending might be even greater.

TikTok’s spending stems from in-app purchases of “coins” – a virtual currency used to buy gifts for creators on the platform. These gifts are a great way for creators to be rewarded for their content. They can even be cashed out as fiat currency, with TikTok keeping 50% of the payout. The app’s top-selling in-app purchase is a bundle of 1,321 coins priced at $19.99, accounting for a significant portion of its revenue. TikTok also generates revenue through various means, such as advertising and e-commerce with TikTok shop. However, data.ai’s analysis did not include these sources of revenue.
Data.ai reveals that a significant portion of the in-app spending that propelled TikTok to the impressive $10 billion milestone came from U.S. consumers and iOS users in China. These two markets individually contributed around 30% of the revenue, which combined to make up a remarkable 60% of the total. Additionally, there are other markets such as Saudi Arabia, Germany, the U.K., and Japan that collectively contributed to 13% of the app’s in-app purchase revenue.

While TikTok has managed to achieve a staggering $10 billion valuation, other non-game apps are also generating billions, although they still lag significantly behind TikTok. TikTok’s closest competitors, Tinder and YouTube, fall behind by a significant margin of $2 to $3 billion, according to the report.
TikTok is on track to become the top-grossing mobile app of all time, with projected earnings nearing the impressive $15 billion mark by 2024. According to Lexi Sydow, head of Insights at data.ai, consumers are tipping their favorite content creators on TikTok at an impressive rate of over $11 million per day. This has propelled TikTok ahead of the highly addictive and well-loved mobile game, Candy Crush Saga, making it a significant milestone. “TikTokers are projected to dedicate a significant amount of time to the app each month by the end of 2024, with a notable increase of 22% compared to 2023,” she mentioned.

The firm anticipates a significant surge in TikTok revenue by 2024, with consumer spending projected to reach a staggering $15 billion.