Tiktok
TikTok has achieved a significant milestone by surpassing $10 billion in global consumer spending, making it the first non-gaming app to achieve this feat. The app is expected to become the highest-earning app ever, even surpassing popular games like Candy Crush. According to a report by app intelligence provider data.ai, TikTok is projected to approach the $15 billion milestone in 2024.
The primary source of revenue for TikTok is in-app purchases, particularly the sale of “coins” that users can buy to send gifts to their favorite content creators. TikTok retains 50% of the payout when these gifts are cashed out by creators. The platform’s most popular in-app purchase this year has been a bundle of 1,321 coins priced at $19.99, contributing to about a quarter of the app’s in-app revenue.
TikTok’s user spending is expected to continue growing, with users projected to spend a significant amount of time on the platform. By the end of 2024, TikTok users are estimated to spend a 40-hour work week each month on the app, representing a 22% increase from the previous year.
Aside from in-app purchases, TikTok also generates revenue through advertising and e-commerce. The platform’s success has positioned it as a major player in the social media landscape, outperforming other popular apps like Candy Crush, Honor of Kings, Monster Strike, and Clash of Clans in terms of consumer spending.
The report also mentions that TikTok’s closest competitors in terms of reaching the $10 billion milestone are dating app Tinder and video platform YouTube, but they trail behind TikTok by $2 to $3 billion as of the end of 2023. Despite concerns and controversies, including allegations of addiction and mental health issues, TikTok has recently secured legal victories in the United States, making it more challenging for critics to impose restrictions on the platform.
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