TikTok Tops $10 Billion in In-App Spending, Far Outpacing Competitors
TikTok has achieved a major milestone, becoming the first app in history to surpass $10 billion in consumer in-app spending in a single year. According to a new analysis by Bloomberg, the popular short-form video app brought in over $10 billion globally in 2023, far outpacing rivals like YouTube and Instagram.
The massive revenue was fueled largely by TikTok’s innovative tipping system, which allows users to directly compensate their favorite creators and live streamers. This feature has proven wildly successful, essentially “unlocking the secret to monetization on mobile” according to market researchers.
While TikTok reigns supreme in the social media realm, mobile gaming continues to lead overall in-app spending, raking in $116 billion last year. However, revenue from non-gaming apps grew substantially in 2023, driven by streaming services, dating apps, and user-generated content platforms like TikTok.
TikTok’s dominance highlights a broader shift in consumer behavior, with people spending more time glued to their smartphones than ever before. Daily usage topped 5 hours on average across the top 10 markets, up from 4 hours just a year ago. This mobile addiction has been a boon for app developers, with in-app spending rising 11% from 2022.
Going forward, experts predict even faster growth, as artificial intelligence transforms the mobile landscape. By late 2023, AI apps had already crossed $10 billion per month in consumer spending.
TikTok’s meteoric rise seems nearly unstoppable at this point. Competitors should take note, as this Chinese-owned app has clearly discovered the secret sauce for turning eyeballs into billions.
