TikTok achieves historic $10 Billion user spending milestone, projected to surpass $15 Billion in 2024

Hong Kong – December 14, 2023

TikTok-achieves-historic-10-Billion-user-spending-milestone

TikTok, the renowned video-sharing platform, has reached an unprecedented milestone by surpassing $10 billion in global consumer spending, setting a new record for a non-gaming mobile application. This achievement, as reported by research firm Data•ai, positions TikTok on track to become the highest-earning app ever, potentially hitting the $15 billion mark in 2024.

Unlike its predecessors in the $10 billion club, which are all mobile games (Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans), TikTok has emerged as a trailblazer in the realm of user spending. Data•ai’s findings reveal that TikTok users have spent a staggering $10 billion on in-app purchases, particularly on the platform’s ‘coins,’ which can be used to purchase virtual gifts for content creators.

Of the $10 billion total, the United States constitutes approximately $3 billion, while iOS users in China contribute another $3 billion. Surprisingly, Saudi Arabia emerges as the third most lucrative country for TikTok in-app purchases, surpassing traditional economic powerhouses like Germany, the UK, and Japan.

Lexi Sydow, Head of Insights at Data•ai, expressed the platform’s potential, stating, “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.”

This surge in user spending is attributed to TikTok’s innovative in-app purchases, where users buy ‘coins’ to reward their favorite influencers. The platform retains 50% of the payout when these gifts are cashed out. The most popular in-app purchase in 2023 has been the bundle of 1,321 coins for $19.99, constituting approximately a quarter of TikTok’s in-app revenue.

Notably, TikTok’s revenue streams extend beyond in-app purchases to include advertising and e-commerce. Data.ai identifies dating app Tinder and video platform YouTube as the next closest contenders to the $10 billion milestone, trailing TikTok by a margin of $2 to $3 billion as 2023 draws to a close.

Despite TikTok’s phenomenal success, the platform has faced global scrutiny, with concerns about its ties to China leading to official bans in some countries. However, recent court victories in the United States may bolster TikTok’s resilience against regulatory challenges, as the platform continues to redefine the landscape of user engagement and spending in the digital realm.

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