TikTok on Track to Hit $15 Billion in Consumer Spending by 2024

TikTok, the wildly popular short-form video app, has achieved a groundbreaking milestone by becoming the first non-game mobile application to reach $10 billion in consumer spending across both the Apple App Store and Google Play. Boasting over 1 billion monthly active users in 2021, TikTok entered 2023 with $6.2 billion in consumer spending, adding an impressive $3.8 billion throughout the year—a 61% growth.

The primary source of this revenue stems from TikTok’s in-app purchases, specifically its virtual currency, “coins.” Users spend these coins on gifts for content creators, who can convert them into real currency. Notably, the app’s most popular in-app purchase is a $19.99 bundle of 1,321 coins, contributing to a quarter of its revenue.

TikTok’s massive spending surge is attributed to U.S. consumers and iOS users in China, driving 60% of the total revenue. Data.ai predicts TikTok’s revenue will continue to soar, reaching an astounding $15 billion in consumer spending by 2024. This projection places TikTok on the path to surpassing Candy Crush Saga, the highest-earning mobile game to date.

While other non-game apps like Tinder and YouTube pull in billions, TikTok remains unmatched, with its closest competitors trailing by $2 to $3 billion. According to Lexi Sydow, head of Insights at data.ai, TikTok users are anticipated to spend a remarkable 40 hours per month in the app by the end of 2024—a 22% increase from 2023.

TikTok’s phenomenal success underscores its position as a revenue giant, with predictions indicating it will continue dominating the mobile app landscape in the years to come.

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