TikTok has done it.
TikTok has shattered the mobile app ceiling, becoming the first non-game app to rake in a staggering $10 billion in global consumer spending. And there’s more. Analysts predict TikTok will become the highest-earning mobile app of all time, reaching a whopping $15 billion milestone in 2024.
While TikTok is sitting pretty at the top currently, it shares the $10 billion club with four heavyweight mobile games: Candy Crush Saga, the jewel-matching masterpiece from Activision Blizzard; Honor of Kings, the Tencent-developed MOBA titan; Monster Strike, the monster-collecting phenomenon from Mixi; and Clash of Clans, the strategy war game by Supercell.
TikTok’s addictive short-form videos, coupled with its thriving creator community, have captivated audiences worldwide. Users spend an average of nearly 40 hours per month glued to the app, a testament to its engaging content and powerful algorithm.
TikTok virtual gifting model
TikTok thrives on a unique virtual gifting system. Users shower their favorite creators with digital gifts, which can be converted into real cash (with TikTok taking a cut, of course). Their most popular $19.99 coin bundle rakes in a quarter of their in-app revenue.
But TikTok isn’t just about gifts; advertising and e-commerce bring in even more, leaving dating app Tinder and YouTube trailing by billions as 2023 ends. This creator-centric model fuels engagement and keeps users coming back for more.
Concerns about data privacy, content moderation, and potential addiction, particularly among young users, continue to swirl. However, its recent legal victories in the US suggest it’s here to stay, and its global reach and diverse revenue streams position it for continued growth.
