TikTok breaks records as the first non-game app to surpass $10 billion in consumer spending

TikTok has achieved a historic milestone, becoming the first non-game mobile app to generate over $10 billion in consumer spending, according to data.ai. The social video app’s exceptional growth is evident from surpassing the $1 billion mark in Q1 to reaching a cumulative $10 billion by the end of the year. 

This achievement places TikTok among the elite group of mobile apps with Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans, all of which have also surpassed the $10 billion revenue mark.

TikTok’s growth trajectory is remarkable, with a 61% increase in consumer spending throughout 2023, outpacing its 2022 revenue by 15%. Notably, TikTok has outperformed major apps like Tinder and YouTube, maintaining a substantial lead of $2 to $3 billion.

The United States and iOS users in China lead in contributing approximately 30% each to TikTok’s overall revenue, forming a significant 60% of the total. Other top markets include Saudi Arabia, Germany, the United Kingdom, and Japan, collectively contributing around 13% of the app’s in-app purchase (IAP) revenue.

The driving force behind TikTok’s impressive revenue is its virtual currency, TikTok coins. Users make one-time in-app purchases, primarily the popular bundle of 1,321 coins for $19.99, which constitutes a quarter of the app’s IAP revenue. TikTok’s unique model involves users spending these coins on virtual gifts for content creators, creating a vibrant ecosystem.

Looking ahead, TikTok is projected to continue its financial ascent, with an anticipated $15 billion in consumer spending in 2024. This forecast, along with the app’s diversified revenue streams, including in-app advertising and the recent addition of TikTok Shop for e-commerce, positions TikTok as a frontrunner for becoming the highest-earning mobile app globally.

According to Lexi Sydow, Head of Insights at data.ai, “TikTok’s extraordinary success is poised to reach new heights, approaching the $15 billion milestone in 2024. The app’s innovative monetization strategies and user engagement demonstrate its potential to surpass even the most lucrative mobile games, setting a new standard for the industry.”