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.