TikTok surpasses $15 billion in lifetime consumer spending

TikTok has emerged as the second app in history—and the first non-gaming app—to surpass the $15 billion milestone in global consumer spending, according to Sensor Tower.

Joining the exclusive $15 billion club, TikTok stands alongside Honor of Kings, Tencent’s massively popular multiplayer online battle arena (MOBA) game. The achievement places TikTok in an elite category, with only a handful of other apps nearing the $10 billion mark, including Monster Strike and Candy Crush Saga. Within the non-gaming sector, TikTok’s supremacy is even more evident, with YouTube and Tinder trailing behind at approximately $8 billion in lifetime consumer spending.

China has played a significant role in TikTok’s financial success, contributing nearly $7 billion, or 47% of its total revenue, through its Chinese version, Douyin. However, earlier this year, the United States surpassed China as TikTok’s largest market in consumer spending across iOS and Google Play, accounting for around $3.2 billion, or 22% of the global total. Other key markets include Germany, Japan, and Saudi Arabia, each contributing about 3% to TikTok’s overall revenue.

TikTok’s journey to the top began with ByteDance’s acquisition of musical.ly in November 2017, which paved the way for its rapid ascent. Now, TikTok ranks as the fifth most downloaded app of all time, trailing only behind Meta’s juggernauts: WhatsApp Messenger, Facebook, Messenger, and Instagram. The app’s rise was not without challenges, notably the 2020 ban in India, which was then the largest market for app downloads. Despite this setback, TikTok continued to thrive, consistently ranking among the most downloaded apps worldwide, with only Instagram providing competition in recent quarters.

TikTok’s path to $15 billion is particularly noteworthy given its initial reliance on advertising revenue. It wasn’t until 2020 that TikTok gained significant traction with in-app purchases, thanks to its innovative monetization strategy that allows users to purchase coins for tipping creators. This approach has set TikTok apart from other non-gaming apps, which typically rely on advertising or subscription models. In Q2 2024 alone, TikTok saw consumer spending on in-app purchases exceed $1.3 billion, marking the fifth consecutive quarter of at least $1 billion in spending. If this growth trajectory continues, TikTok could surpass Honor of Kings as the top-grossing mobile app within the next year.

While in-app purchases have significantly contributed to TikTok’s revenue, advertising remains the platform’s primary income source. According to Sensor Tower’s Digital Market Index report, TikTok’s digital ad revenue in the United States alone exceeded $2 billion in Q2 2024. Although TikTok’s ad revenue still lags behind Meta’s Facebook and Instagram, it has steadily gained market share, accounting for 12.2% of US ad spending among the top social networks in 2024, up from 9% in 2022.