TikTok has surged past traditional non-gaming mobile applications, amassing a staggering $10 billion in user spending across the Apple App Store and Google Play. Data.ai’s latest report reveals that the short video platform, boasting 1 billion monthly active users in 2021, now stands alongside gaming giants in the realm of consumer spending.
The mobile app entered 2023 with an impressive $6.2 billion in user spending and then skyrocketed, adding an additional $3.8 billion, marking a remarkable 61% year-over-year surge. This surge outpaces 2022’s growth of $3.8 billion by 15%, solidifying TikTok’s stronghold in the realm of in-app purchases.
TikTok’s monetization strategy primarily revolves around its virtual currency, “coins,” offering users the ability to purchase gifts for their favorite creators. These gifts, acting as rewards for compelling content, can be exchanged for cash, albeit with TikTok claiming a hefty 50% commission from the payout. The most popular in-app purchase, a set of 1,321 coins for $19.99, remarkably constitutes a quarter of all user spending.
Notably, the lion’s share of user spending comes from U.S. consumers and iOS users in China, contributing approximately 30% of revenue each. Saudi Arabia, Germany, the UK, and Japan follow suit, collectively accounting for 13% of the platform’s in-app shopping revenue.
While TikTok’s feat overshadows other non-gaming apps like Tinder and YouTube in user spending, the report suggests that this trend will persist and project TikTok’s spending to soar to an impressive $15 billion in 2024. The platform’s unique approach to user engagement continues to redefine digital spending dynamics, solidifying its status as a financial powerhouse in the app world.
