TikTok, the popular social media app, has achieved a significant milestone by becoming the first non-game mobile app to generate $10 billion in consumer spending. This impressive achievement comes after the app reached one billion monthly active users in 2021. Previously, the record of consumer spending was held by gaming apps such as Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans.
According to data.ai, TikTok began 2023 with more than $6.2 billion in consumer spending and added another $3.8 billion throughout the year. These statistics are exclusively from TikTok’s revenue generated through consumer purchases on iOS and Google Play platforms. The calculation does not include third-party Android application stores in China, which means the total spending could be even higher.
The spending on TikTok comes from in-app purchases of “coins,” which are a virtual currency that users can spend on gifts for creators on the platform. The app has become a popular platform for creators to showcase their talents and gain a following. In turn, users purchase coins to support their favorite creators by sending them gifts.
The success of TikTok’s in-app purchases highlights the growing trend of social media apps monetizing their platforms beyond traditional advertising. It also shows the potential for non-gaming apps to generate significant revenue through in-app purchases.
In conclusion, TikTok’s achievement of generating $10 billion in consumer spending is a remarkable feat for a non-gaming app and a testament to its popularity among users. The app’s success also highlights the potential for social media apps to generate significant revenue through in-app purchases, beyond traditional advertising.