TikTok, the video-sharing platform, has become the first non-gaming app to generate $10 billion in worldwide consumer spending, according to a fresh report. The report further anticipates that TikTok could pave its way to becoming the highest-grossing app ever.
The report by app intelligence specialist data.ai lists four other apps that have hit this milestone, all of which are electronic games: Candy Crush Saga by Activision Blizzard, Honor of Kings from Tencent, Monster Strike developed by Mixi, and Clash of Clans by Supercell.
As per the report released on Monday, Candy Crush remains at the top as the all-time highest earner with a total of more than $12 billion in lifetime user spending. These calculations are grounded in revenues from Google Play and Apple’s iOS App Store. Nonetheless, TikTok is predicted to eventually outperform even this popular game.
Lexi Sydow, Head of Insights at data.ai, said in a statement introducing the report;
TikTok is poised to become the highest earning mobile app ever — approaching the $15 billion milestone in 2024. Consumers are spending over $11 million per day tipping their favorite content creators, propelling TikTok past the world’s most lucrative mobile game to date.
TikTokers are poised to spend a 40-hour work week each month in the app by the end of 2024, [which is up] 22% from 2023.
The consumer spending on TikTok arises from in-app purchases of “coins,” which users can use to buy virtual gifts for content creators on the platform. The gifts serve as tokens of appreciation for the creators’ content and can be converted into money, with TikTok retaining a 50% cut.
As per data.ai, the most frequent in-app purchase on TikTok this year was their 1,321 coin bundle priced at $19.99. It is estimated that this bundle constitutes about a quarter of the app’s in-app revenue. In addition to in-app purchases, the massively popular short-video platform has additional revenue sources, including advertising and e-commerce.
According to the data provider, the dating app Tinder and video platform YouTube are closing in on the $10 billion milestone, trailing TikTok by an estimated $2-$3 billion as we approach the end of 2023.
TikTok, under the ownership of China’s ByteDance, has recently secured two consecutive legal wins in the United States. These victories are likely to make it more challenging for the critics to impose restrictions on the company.
Global governments have banned the app on official devices due to concerns over TikTok’s ties with China. Additionally, it has faced accusations of causing addiction among teen users and inducing other mental health issues, all of which TikTok refutes.
