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TikTok Becomes First Non-Game App to Hit $10 Billion in Consumer Spending
TikTok sets new record as first non-gaming app ever to generate $10 billion in total consumer spending
Aileen Lor
December 14, 2023
• TikTok hits $10B in consumer spending, a first for non-game apps.
• Revenue from virtual coin gifts grew 61% to $3.8B.
• Future spending could reach $15B as usage hits 40 hours/month.
TikTok continues to set new records, becoming the first non-game mobile app to generate $10 billion in total consumer spending on iOS and Android stores. The achievement cements TikTok's place among top-grossing mobile apps globally.
Yearly Revenue
According to an analysis by data.ai, TikTok raked in over $3.8 billion in 2023 consumer spending, representing 61% growth this year.
That also marks a 15% increase over 2022's impressive haul of $3.3 billion.
The spending stems from in-app purchases of "coins," a virtual currency that users gift to creators. TikTok takes a 50% cut when creators cash out coins for money.
Coin Purchases
The $19.99 coin bundle makes up one-quarter of TikTok's in-app purchase revenue.
U.S. consumers and Chinese iOS users accounted for about 30% of coin purchases, combining to drive 60% of TikTok's total in-app spending. Other top markets include Saudi Arabia, Germany, the U.K. and Japan.
While trailing top-grossing games like Candy Crush Saga, TikTok is on track to become the highest-earning mobile app ever.
Future Growth Spending
Data.ai predicts consumer spending could hit $15 billion next year as users devote over 40 hours per month to the addictive app.
The incredible revenue growth cements TikTok's dominance as a cultural phenomenon and financial juggernaut, outpacing rival apps like Tinder and YouTube by billions.
Propelled by a thriving creator economy, TikTok looks set to break records for years.
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