Short-video platform TikTok has seen users collectively spend an impressive $10 billion on the platform, according to data.ai. This milestone positions TikTok as the first non-gaming mobile application to reach such a remarkable spending figure across both the Apple App Store and Google Play.
While gaming giants like Candy Crush Saga and Honor of Kings still lead the pack with over $12 billion each, TikTok’s ascent to the $10 billion club is a testament to its growing influence. The report highlights TikTok’s exceptional growth, entering 2023 with $6.2 billion in user spending and subsequently adding another $3.8 billion, marking a substantial 61% year-over-year increase.
Notably, TikTok’s user spending surpasses that of other non-gaming apps, including Tinder and YouTube. The primary currency fueling this spending spree is TikTok’s virtual coins, a digital currency enabling users to purchase gifts for content creators. However, it’s worth noting that TikTok retains a substantial 50% commission on payouts.
The most popular in-app purchase on TikTok, a $19.99 bundle offering 1,321 coins, accounts for a quarter of user spending. The majority of spending hails from U.S. consumers and iOS users in China, constituting around 30% each, followed by key markets like Saudi Arabia, Germany, the UK, and Japan, collectively contributing 13% of the platform’s in-app shopping revenue.
Data.ai’s projections indicate a continued upward trajectory for TikTok’s spending trends, forecasting a rise to $15 billion in 2024. As TikTok solidifies its position in the digital spending landscape, the platform’s allure for both creators and consumers shows no signs of waning.