According to Insider Intelligence, TikTok’s global ad revenues will triple by 2022, surpassing the combined of the two competitors. China’s popular short video app is projected to have more than $11 billion in ad revenue by 2022, more than half of which comes from the United States.
TikTok‘s advertising business, which increased by 175% last year and reached $3.88 billion, will increase by 200% in 2022 and increase revenues to $11.64 billion.
Insider Intelligence also predicts that by 2024, TikTok’s ad revenues will grow to $23.58 billion, equivalent to that of YouTube ($23.65 billion). By then, each company’s share of the worldwide digital advertising market will be 3.1%.
Despite explosive growth in revenues, TikTok’s share of the worldwide digital advertising market will rise slightly from 0.7% in 2021 to 1.9% this year.
“TikTok’s user base has exploded in the past couple of years, and the amount of time users spend on the app is extraordinary,” said Insider Intelligence principal analyst Debra Aho Williamson. “It has moved well beyond its roots as a lip-syncing and dancing app; it creates trends and fosters deep connections with creators that keep users engaged, video after video. Advertisers want to reach a passionate, dedicated audience, and TikTok can deliver that. Another factor that will drive growth in ad spending is TikTok’s unique take on social commerce. It pairs marketers with creators to help content go viral, and that can drive enormous demand for products that advertisers want to promote.”
The report predicts that 51.2% of TikTok’s revenues will come from the US in 2022. It will generate $5.96 billion, an increase of 184.4% YoY, marking a 2.4% share of the US digital ad market. “Importantly, the Chinese app will surpass Twitter and Snapchat combined within the US market, as well.”
Starting 2023, growth will slow to double digits, but TikTok’s US ad revenues will exceed $11 billion by 2024, raising its share of the market to 3.5%. Meanwhile, 46.7% of TikTok’s global ad revenues will come from the US.