The First Non-Game App to Hit $10 Billion in Consumer Spending

TikTok Reaches a New Milestone

In 2023, TikTok achieved a significant benchmark by becoming the first non-game mobile app to generate $10 billion in consumer spending across the Apple App Store and Google Play combined. It surpassed other high-earning non-game apps like YouTube and Tinder by over $2 billion. TikTok entered 2023 with $6.2 billion already in consumer spending and added another $3.8 billion over the course of the year, representing 61% growth from the start of the year.

How TikTok Generates Revenue

TikTok earns revenue primarily through in-app purchases of “coins,” a virtual currency users spend to gift and reward creators. Creators can then cash out a portion of these gifts. The app’s most popular purchase is a bundle of 1,321 coins for $19.99, accounting for 25% of TikTok’s revenue. While in-app purchases drove the $10 billion milestone, TikTok also generates revenue from advertising and e-commerce through TikTok Shop.

Key Markets Driving Success

The US and iOS users in China contributed approximately 30% of in-app spending each, totaling 60% combined. Other significant markets included Saudi Arabia, Germany, the UK, and Japan, together making up 13% of revenue.

Continued Growth and Success Predicted for 2024

On Track to Become Highest Earning Mobile App

Data.ai predicts TikTok’s revenue will grow again in 2024, reaching $15 billion in consumer spending. At this pace, it will surpass Candy Crush Saga as the highest earning mobile game ever and approach the $15 billion milestone.

Increased Engagement and Spending

The firm estimates that by the end of 2024, TikTok users will spend the equivalent of a 40-hour work week each month in the app - a 22% increase from 2023 levels of engagement. As users spend more time on the platform, they are expected to continue fueling TikTok’s revenue growth through in-app purchases.

Strong Foundation for Future Success

Having achieved the significant $10 billion benchmark, TikTok has built a huge userbase and proven successful monetization strategies. If engagement and revenue grow as predicted, it will cement its place as not just the highest earning non-game app but the most lucrative mobile app overall.