TikTok’s short-form video app is hitting a brand new milestone. The app, which reached 1 billion monthly active users in 2021, has now turn into the primary non-game cellular app to generate $10 billion in shopper spending throughout the Apple App Retailer and Google Play mixed, in line with a brand new evaluation by app intelligence supplier data.ai. The one different apps to have achieved this are all video games, together with Sweet Crush Saga from King/Activision Blizzard, the highest earner at over $12 billion, plus Tencent’s Honor of Kings, XFLAG/Mixi’s Monster Strike, and Supercell’s Conflict of Clans.
The report notes that TikTok entered 2023 with greater than $6.2 billion in shopper spending already after which added one other $3.8 billion all through the course of the yr, or 61% progress from the yr’s begin. The determine can also be 15% larger than 2022’s complete of $3.3 billion, knowledge.ai says. For reference, its report consists of solely TikTok’s shopper spending throughout iOS and Google Play, not the third-party Android app shops in China. Meaning TikTok’s complete shopper spending could possibly be even larger.
The spending comes from TikTok’s in-app purchases of “coins” — a digital foreign money that customers can spend on presents for creators on the platform. These presents reward creators for his or her content material and might be cashed out as fiat foreign money, with TikTok retaining 50% of the payout. The app’s hottest in-app buy is a bundle of 1321 cash for $19.99, which makes up 1 / 4 of its income. TikTok additionally generates income exterior of in-app purchases, like by way of promoting and e-commerce with TikTok store, however these weren’t counted in knowledge.ai’s evaluation.
Information.ai says U.S. customers and iOS customers in China accounted for almost all of the in-app spending that pushed TikTok to the the $10 billion milestone, as each markets drove roughly 30% of the income on their very own, or 60% of the whole, when mixed. Following are different markets together with Saudi Arabia, Germany, the U.Okay., and Japan, which mixed accounted for 13% of the app’s in-app buy income.
Although TikTok is the one non-game app to succeed in $10 billion, different non-game apps pull in billions — however they’re nicely behind TikTok. Its subsequent nearest rivals are Tinder and YouTube, however each path TikTok by between $2 to $3 billion, the report notes.
Picture Credit: knowledge.ai
“TikTok is poised to become the highest earning mobile app ever — approaching the $15 billion milestone in 2024. Consumers are spending over $11 million per day tipping their favorite content creators, propelling TikTok past the world’s most lucrative mobile game to date: the addictive and beloved Candy Crush Saga,” mentioned Lexi Sydow, Head of Insights at knowledge.ai, in an announcement concerning the new milestone. “TikTokers are poised to spend a 40-hour work week each month in the app by the end of 2024, +22% from 2023,” she added.
The agency predicts TikTok income will develop once more in 2024, reaching $15 billion in shopper spending.
