Is TikTok really that successful? The app reached 1 billion monthly active users by 2021 and recently set a new record. TikTok is the only mobile app without games that has generated purchases worth 10 billion dollars. TikTok now has a place of honor in digital marketing as the app with the highest revenue!
The path to victory
According to an in-depth analysis by Data.ai, TikTok has cemented its position as one of the most lucrative mobile apps worldwide. Based on comprehensive data from the App Store and Google Play from 2016 to 2023, TikTok has amassed a staggering revenue of more than 10 billion US dollars throughout its existence.
At the beginning of this year, consumer spending on the platform was $6 billion, and by the end of the fall, +$3.8 billion had been added. That’s an impressive jump of +61% year-on-year and 45% more than the previous year! For comparison: these figures only refer to spending by iOS and Google Play users. The figure is even higher if you include the Chinese Android stores from third-party providers.
What is the result? TikTok has managed to maintain its sales lead and eclipse the heavyweights Tinder and YouTube: Its closest competitors are now 3 billion dollars behind the market leader.
Why does TikTok maintain its position at the top of the charts?
TikTok remains a favorite of the young and ambitious: The main age of the target group is between 16 and 34. This also has an impact on the advertising formats, the most popular of which are:
Uniqlo UT’s collaboration with TikTok for the #UTPlayYourWorld competition in Japan, Taiwan and France was a successful example. Using the corresponding hashtag, participants were asked to showcase their Uniqlo UT outfits on TikTok. The selected participants gained high visibility and appeared on advertising screens in Uniqlo stores and social media platforms. The campaign, which ran for two weeks, had over 95,000 participants and was viewed more than 330 million times.
For example, Nike’s #YoureIt campaign was conceived as an international tag game. It invited girls from Europe to prove their fitness and skills by tagging their friends on Instagram, Snapchat and TikTok with personalized brand stickers.
TikTok’s revenue streams revealed
Today, TikTok’s main spending comes from in-app purchases through “virtual Koins” that can be redeemed (incidentally, the platform always keeps 50% of sales). The audience rewards video creators for liking content with coins. The most popular in-app purchase is a bundle of over 1,300 coins for $19.99.
Most of TikTok’s profits come from iOS users from the US and China (up to 60%), who are willing to spend their money on virtual coins indefinitely. The platform’s high revenues also depend on the affluent audience in the Middle East, Germany, England and Japan (up to 15% of revenues per year).
The top apps that will make TikTok the most money in 2023 are advertising and e-commerce with the recently added TikTok Shop feature.
TikTok has set a new standard in the industry
Today, TikTok can confidently be described as the frontrunner in the race for the world’s best-paid mobile application title. And according to forecasts, consumer spending will rise to 15 billion dollars by 2024.
“TikTok’s phenomenal success is gradually approaching the $15 billion mark in 2024. The platform will eclipse the most lucrative mobile games thanks to innovative app monetization and audience engagement strategies”
Head of Analytics at data.ai
Lexi Sudov also states this:
There’s a wide scope for expansion
TikTok continues to expand its leading position in mobile apps and TikTok Shop for E-commerce, where creators and sellers can conduct business directly on the platform. In addition, TikTok is introducing more and more exciting features and opportunities for advertisers. If you need real-life examples of successful advertising on TikTok, you can find them in AdSkill’s case studies on running ads for high-value products.
Marketers and advertisers will definitely have something to do on the platform. In the meantime, the AdSkill team will always help you find the best strategy for your launch, provide you with agency accounts and offer you comprehensive support at every stage of your work. Write to our managers @Sales_AdSkill and achieve record conversion rates on a top platform!
