TikTok, the popular short-form video platform, has achieved a significant landmark as the first non-gaming mobile application to accumulate $10 billion in consumer spending.
This milestone, achieved through the combined revenue from the Apple App Store and Google Play, was detailed in a recent report by app intelligence firm data.ai.
Previously, this level of revenue generation had only been attained by gaming apps such as Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans.
As of the beginning of 2023, TikTok had already garnered more than $6.2 billion in consumer spending. The app then saw an additional influx of $3.8 billion over the year, marking a 61% increase from the start of the year and a 15% rise from 2022’s total of $3.3 billion, as per data.ai’s findings.
It’s important to note that these figures represent TikTok’s revenue on iOS and Google Play only, excluding third-party Android app stores in China, suggesting the actual total consumer spending on TikTok could be even higher.
This revenue primarily stems from the purchase of “coins” within the app, a virtual currency that users buy to gift to content creators.
These gifts act as a form of appreciation for the creators’ contributions and can be converted into real money, with TikTok retaining half of the payout.
The app’s most profitable in-app purchase is a package of 1,321 coins priced at $19.99, accounting for a significant portion of its revenue.
Besides in-app purchases, TikTok also earns from advertising and e-commerce through its TikTok shop feature, though these were not included in data.ai’s analysis.
While TikTok stands as the only non-game app to have reached the $10 billion mark in consumer spending, other non-game apps like Tinder and YouTube also generate billions in revenue, but they lag behind TikTok by $2 to $3 billion, according to the report.
