Emmanuel OchayiTikTok, the popular short video platform by Bytedance, has had its revenue earnings rise to the $10 billion milestone in consumer spending, marking an unprecedented achievement for a non-game application.
Revealed in a report by app intelligence provider data.ai, the platform’s success highlights its dominance in the market and paves the way for potential future growth.
Join our WhatsApp Channel“This accomplishment cements TikTok’s place among the top-grossing mobile apps globally,” remarked Lexi Sydow, Head of Insights at data.ai. “Consumers are significantly contributing to the platform’s revenue, especially through the purchase of in-app ‘coins’ used for gifting creators.”
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The report disclosed that TikTok amassed $3.8 billion in consumer spending from the Apple App Store and Google Play Store in 2023, culminating in a total revenue of $10 billion. Notably, TikTok became the first non-gaming app to surpass the $1 billion mark in worldwide consumer spending within a single quarter during Q1 2023.
Data.ai’s findings further emphasized that TikTok’s growth has been staggering, with a 61% increase in consumer spending from its 2023 starting point, surpassing 2022’s sum by 15%. This achievement places TikTok among an elite group of apps, with only five mobile applications having reached $10 billion.
The report highlighted the significance of in-app purchases, particularly the popular 1,321 coin bundle priced at $19.99, accounting for a quarter of TikTok’s revenue. However, it clarified that revenue generated through advertising and the TikTok Shop was not included in data.ai’s analysis.
Looking ahead, data.ai projected an even more trajectory for TikTok’s revenue in 2024, estimating $15 billion in consumer spending. This anticipated growth stems from the platform’s diversified revenue streams, including its successful foray into e-commerce via TikTok Shop, introduced in September of the previous year.
“TikTok is on track to become the highest-earning mobile app to date,” Sydow added. “Users’ spending habits indicate a dedication to the platform, propelling it beyond the revenue of even the most popular mobile games.”
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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