When TikTok became the first mobile app to surpass $1 billion in global consumer spending in the first quarter, it was not difficult for the industry to imagine that 2023 would be a brilliant year for TikTok.
According to data analysis company DataAccording to data released by AI, before entering 2023, TikTok user consumption has exceeded $6.2 billion, and since the beginning of this year, the total user consumption has increased by $3.8 billion, and all of them come from user tips.
That's $10 billion in cumulative consumer spend on TikTok since its launch, and only five apps (including TikTok) have reached that level so farTikTok is the first non-mobile gaming app to achieve this goal.
The other four apps that achieved this goal were Activision Blizzard's mobile game Candy Crush Saga (with over $12 billion in consumer spend), Tencent's Honor of Kings ($110 in consumer spend), Mixi Japan's Monster Marble ($10.6 billion in consumer spend), and Finnish mobile game company Supercell's Clash of Clans ($10.2 billion in consumer spend).
It's worth noting that supporting TikTok's revenue growth are virtual coins, which users can earn different amounts of coins through in-app purchases (IAPs) and use these coins to buy virtual gifts for content creators on the platform. The creator then redeems these virtual gifts for virtual diamonds, which are then withdrawn. In the process, TikTok withholds 50% of the tip amount as its own income.
data.According to AI intelligence, TikTok's best-selling IAP in 2023 is a bundle containing 1321 gold coins for $19$99. This bundle is so popular that it contributes a quarter of TikTok's IAP revenue.
In addition, TikTok consumer spending is expected to accelerate in 2024, according to DataAI said last weekTikTok's consumer spend will reach $15 billion by then, which is 50% higher than the current cumulative spending.
Lexi Sydow, head of insights at the agency, said:
TikTok is on track to become the highest-grossing app of all time, approaching the $15 billion (revenue) milestone by 2024. Consumers spend more than $11 million a day tipping their favorite content creators, which fuels TikTok's growth.data.AI also said that by the end of 2024, TikTok users will be active for up to 40 hours per week, an increase of 22% from 2023.
Wall Street news, welcome **app to see more.