TikTok becomes first non-game app to reach $10B in consumer spending
TikTok’s short-form video app is hitting 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 across the Apple App Store and Google Play combined, according to a new analysis by app intelligence provider data.ai. The only other apps to have achieved this are all games, including Candy Crush Saga from King/Activision Blizzard, 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 already and then added another $3.8 billion throughout the course of the year, or 61% growth from the year’s start. The figure is also 15% higher than 2022’s total of $3.3 billion, data.ai says. For reference, its report includes only TikTok’s consumer spending across iOS and Google Play, not the third-party Android app stores in China. That means TikTok’s total consumer spending could be even higher.
The spending comes from TikTok’s in-app purchases of “coins” — a virtual currency that users can spend on gifts for creators on the platform. These gifts reward creators for their content and can be cashed out as fiat currency, with TikTok retaining 50% of the payout. The app’s most popular in-app purchase is a bundle of 1,321 coins for $19.99, which makes up a quarter of its revenue. TikTok also generates revenue outside of in-app purchases, like via advertising and e-commerce with TikTok shop, but these weren’t counted in data.ai’s analysis.
The report notes that TikTok entered 2023 with more than $6.2 billion in consumer spending already and then added another $3.8 billion throughout the course of the year, or 61% growth from the year’s start. The figure is also 15% higher than 2022’s total of $3.3 billion, data.ai says. For reference, its report includes only TikTok’s consumer spending across iOS and Google Play, not the third-party Android app stores in China. That means TikTok’s total consumer spending could be even higher.
The spending comes from TikTok’s in-app purchases of “coins” — a virtual currency that users can spend on gifts for creators on the platform. These gifts reward creators for their content and can be cashed out as fiat currency, with TikTok retaining 50% of the payout. The app’s most popular in-app purchase is a bundle of 1,321 coins for $19.99, which makes up a quarter of its revenue. TikTok also generates revenue outside of in-app purchases, like via advertising and e-commerce with TikTok shop, but these weren’t counted in data.ai’s analysis.
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