The short video app TikTok is reaching a new milestone. The app, which reached 1 billion monthly active users in 2021, has now become the first non-game mobile app to generate $10 billion in consumer spending on the Apple App Store and Google Play combined, according to a report. new analysis by an application intelligence provider. ai“>data.ai. The only other apps to achieve this are all games, including King/Activision Blizzard's Candy Crush Saga, the top earner at over $12 billion, plus Tencent's Honor of Kings, XFLAG/Mixi's Monster Strike and Supercell's Clash of Clans.
The report notes that TikTok entered 2023 with more than $6.2 billion in consumer spending and then added another $3.8 billion over the course of the year, or 61% growth since the start of the year. The figure is also 15% higher than the 2022 total of $3.3 billion, according to data.ai. For reference, its report includes only TikTok consumer spending on iOS and Google Play, not third-party Android app stores in China. That means TikTok's total consumer spending could be even higher.
The spending comes from TikTok purchases of in-app “coins,” a virtual currency that users can spend on gifts for the platform's creators. These gifts reward creators for their content and can be redeemed as fiat currency, with TikTok taking 50% of the payment. The app's most popular in-app purchase is a pack of 1,321 coins for $19.99, which accounts for a quarter of its revenue. TikTok also generates revenue outside of in-app purchases, such as through advertising and e-commerce with the TikTok store, but these were not counted in data.ai's analysis.
Data.ai says American consumers and iOS users in China accounted for the majority of the app spending that led TikTok to reach the $10 billion mark, with both markets generating about 30% of the revenue. income alone, or 60% of the total. total, when combined. Next are other markets, including Saudi Arabia, Germany, the United Kingdom and Japan, which together accounted for 13% of in-app purchase revenue.
Although TikTok is the only non-gaming app to reach $10 billion, other non-gaming apps rake in billions but are far behind TikTok. Its next closest rivals are Tinder and YouTube, but both trail TikTok by between $2 and $3 billion, the report notes.
“TikTok is poised to become the highest-grossing mobile app in history, approaching the $15 billion mark by 2024. Consumers are spending more than $11 million a day tipping their creators.” favorite content, propelling TikTok beyond the world's most lucrative mobile game to date: the addictive and beloved Candy Crush Saga,” said Lexi Sydow, Chief Insights Officer at data.ai, ai/en/insights/top-trending-apps/tiktok-10-billion-revenue/”>in an advertisement about the new milestone. “TikTokers are set to spend a 40-hour workweek each month on the app by the end of 2024, up +22% from 2023,” he added.
The signature ai/en/go/5-mobile-app-predictions-2024/”>predict TikTok's revenue will grow again in 2024, reaching $15 billion in consumer spending.