TikTok Surpasses $10 Billion in User Spending: A Remarkable Milestone
TikTok sets a groundbreaking record, surpassing $10 billion in user spending worldwide The viral app's phenomenal success is poised to make it the highest earning non-gaming application ever
Don't miss out on CNN's Meanwhile in China newsletter, delving into the country's global impact and rise. Additionally, according to a recent report, TikTok has made history as the first non-gaming app to generate $10 billion in consumer spending and is projected to be the top earning app of all time.
According to data.ai, four other apps have also reached the same milestone, all of which are games: Activision Blizzard's Candy Crush Saga, Tencent's Honor of Kings, Mixi's Monster Strike, and Supercell's Clash of Clans.
Candy Crush currently holds the top spot as the highest earner, with over $12 billion in lifetime user spending, as reported on Monday. These figures are based on revenue generated from Google Play and the Apple iOS App Store. However, it is anticipated that TikTok will surpass the popularity of this game.
"TikTok is on track to become the highest-earning mobile app, with a projected revenue of $15 billion by 2024. According to Lexi Sydow, head of insights at data.ai, consumers are currently spending over $11 million per day on tips for their favorite content creators, surpassing even the most profitable mobile game. Additionally, TikTokers are expected to spend the equivalent of a 40-hour work week on the app each month by the end of 2024, which is a 22% increase from 2023."
TikTok users are spending on in-app purchases of "coins," which are used to purchase gifts for influencers on the platform. These gifts serve as rewards for creators and can be converted into cash, with TikTok keeping 50% of the payout. Data.ai reports that the most popular in-app purchase this year is the bundle of 1,321 coins for $19.99, accounting for approximately a quarter of the app's in-app revenue. In addition to in-app spending, TikTok generates revenue through advertising and e-commerce.
As 2023 comes to a close, the data provider revealed that popular dating app Tinder and video platform YouTube are on track to reach the $10 billion milestone, but they are still lagging behind TikTok by $2 to $3 billion. Owned by China's ByteDance, TikTok has recently secured two consecutive court victories in the United States, making it more challenging for the company's critics to restrict its operations.
There are growing concerns about TikTok's ties to China, leading governments around the world to ban the app on official devices. Additionally, the app has faced allegations of fostering addiction among teen users and causing mental health issues, which TikTok has denied.
