TikTok, the popular video-sharing platform, has achieved a significant milestone by becoming the first non-gaming app to generate over $10 billion in global consumer spending. The data.ai report identifies four other apps reaching this milestone, all games, with Candy Crush currently holding the top spot at $12 billion in lifetime user spending.
According to the report, TikTok’s in-app purchases, particularly the sale of “coins” used for gifting influencers, contribute to this substantial revenue. Predictions indicate that TikTok is on track to approach the $15 billion mark in 2024, surpassing the earnings of the world’s most lucrative mobile games. Users are expected to spend an increasing amount of time on the app, with a projected 40-hour work week each month by the end of 2024, marking a 22% increase from 2023.
The most popular in-app purchase on TikTok this year has been a bundle of 1,321 coins for $19.99, constituting approximately 25% of the app’s in-app revenue. TikTok’s revenue streams also include advertising and e-commerce.
While dating app Tinder and video platform YouTube are nearing the $10 billion milestone, TikTok maintains a significant lead of $2 to $3 billion. Owned by China’s ByteDance, TikTok recently secured court victories in the United States, strengthening its position amid global concerns about its ties to China and allegations of impacting users’ mental health, which the platform denies.