TikTok’s short-form video app is hitting a brand new milestone. The app, which reached 1 billion month-to-month lively customers in 2021, has now turn into the primary non-game cellular app to generate $10 billion in shopper spending throughout the Apple App Retailer and Google Play mixed, based on a brand new evaluation by app intelligence supplier information.ai. The one different apps to have achieved this are all video games, together with Sweet Crush Saga from King/Activision Blizzard, the highest earner at over $12 billion, plus Tencent’s Honor of Kings, XFLAG/Mixi’s Monster Strike, and Supercell’s Conflict of Clans.
The report notes that TikTok entered 2023 with greater than $6.2 billion in shopper spending already after which added one other $3.8 billion all through the course of the yr, or 61% progress from the yr’s begin. The determine can also be 15% larger than 2022’s whole of $3.3 billion, information.ai says. For reference, its report contains solely TikTok’s shopper spending throughout iOS and Google Play, not the third-party Android app shops in China. Which means TikTok’s whole shopper spending might be even larger.
The spending comes from TikTok’s in-app purchases of “cash” — a digital foreign money that customers can spend on presents for creators on the platform. These presents reward creators for his or her content material and may be cashed out as fiat foreign money, with TikTok retaining 50% of the payout. The app’s hottest in-app buy is a bundle of 1321 cash for $19.99, which makes up 1 / 4 of its income. TikTok additionally generates income outdoors of in-app purchases, like through promoting and e-commerce with TikTok store, however these weren’t counted in information.ai’s evaluation.
Knowledge.ai says U.S. customers and iOS customers in China accounted for almost all of the in-app spending that pushed TikTok to the the $10 billion milestone, as each markets drove roughly 30% of the income on their very own, or 60% of the whole, when mixed. Following are different markets together with Saudi Arabia, Germany, the U.Okay., and Japan, which mixed accounted for 13% of the app’s in-app buy income.
Although TikTok is the one non-game app to succeed in $10 billion, different non-game apps pull in billions — however they’re nicely behind TikTok. Its subsequent nearest rivals are Tinder and YouTube, however each path TikTok by between $2 to $3 billion, the report notes.
Picture Credit: information.ai
“TikTok is poised to turn into the very best incomes cellular app ever — approaching the $15 billion milestone in 2024. Shoppers are spending over $11 million per day tipping their favourite content material creators, propelling TikTok previous the world’s most profitable cellular sport to this point: the addictive and beloved Sweet Crush Saga,” stated Lexi Sydow, Head of Insights at information.ai, in an announcement in regards to the new milestone. “TikTokers are poised to spend a 40-hour work week every month within the app by the tip of 2024, +22% from 2023,” she added.
The agency predicts TikTok income will develop once more in 2024, reaching $15 billion in shopper spending.