TikTok is ending the year 2023 with yet another milestone, this time as a non-video game app to generate $10 billion in global consumer spending. The short video app is approaching the $15 billion milestone in 2024.
A report says consumers are spending over $11 million per day tipping their favorite content creators, propelling TikTok past the world’s most lucrative mobile game Candy Crush to date. ByteDance, TikTok’s parent company, continues to see strong revenue growth. It remains the world’s most valuable private company. ByteDance’s revenue jumped 40 percent year-on-year to USD29 billion in the second quarter.
Revenue for TikTok is driven primarily by TikTok Coins. Users have to purchase these coins to spend on virtual gifts sent to content creators. The app also depends on advertising and has forayed into e-commerce. TikTok’s most popular in-app purchase this year, according to data.ai., has been its bundle of 1,321 coins for $19.99 – this makes up about a quarter of the app’s in-app revenue.
TikTok has established itself as a leading player among short-form social apps since its launch in 2017. It is a go-to app for GenZ and is very much popular among brands and celebrities to promote their content.
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