$10 billion in the Apple App Store and Google Play: TikTok has outpaced mobile games in terms of user spending
TikTok’s short video platform encourages users to spend as much money as in popular mobile games. According to data.ai, the app, which reached 1 billion monthly active users in 2021, became the first non-gaming mobile app to see users spend about $10 billion on the Apple App Store and Google Play combined. The only other programs to reach this figure are games: Candy Crush Saga by King/Activision Blizzard with over $12 billion, as well as Honor of Kings by Tencent, Monster Strike by XFLAG/Mixi, and Clash of Clans by Supercell.
The report notes that TikTok entered 2023 with more than $6.2 billion and then added another $3.8 billion, a 61% increase during the year. This figure is 15% higher than in 2022 – $3.8 billion. The report only includes consumer spending on TikTok on iOS and Google Play, leaving out third-party Android app stores in China.
Users spend TikTok “coins,” a virtual currency that can be spent on gifts for creators. These gifts are rewards for content and can be cashed out. TikTok withholds a large commission – 50% of the payout. The app’s most popular in-app purchase is a set of 1,321 coins for $19.99, which accounts for a quarter of user spending.
US consumers and iOS users in China account for the majority of spending in the program. Both markets accounted for approximately 30% of revenue each. This is followed by other countries, including Saudi Arabia, Germany, the United Kingdom, and Japan, which together account for 13% of in-app purchase revenue.
The other non-gaming apps with the highest user spending are Tinder and YouTube, but both are far behind TikTok.
