From recent reports, we learn that in 2023 TikTok in-app spending summed up to $10 billion. Now that’s an impressive record for the social media platform as it reflects their growth within the year. TikTok is now the first platform to hit a total in-app spending of $10 billion in a single year.
Researchers say that TikTok might have just “unlocked the secret to monetization on mobile” and this isn’t far from the truth. Most netizens would expect this amount of spending from a gaming platform or service, and not a video-sharing social media platform like TikTok. Well, last year wasn’t the best one for the mobile gaming industry, as most people were turning their attention to video-sharing platforms.
- Source: Bloomberg
With more people spending more time on their devices scrolling through TikTok videos, they helped earn the platform more cash. This cash was generated from various sources, one of which is ads, as various firms make use of TikTok’s ad service to help their products reach the average user. Mobile ads were a major source of funds helping TikTok reach this threshold of $10 billion in 2023 alone.
Another major source of in-app spending is via app stores like Google Play Store, Apple App Store, and the like. Via these app stores, users were able to make purchases via the app or even tip their favourite creators on the platform. With over 1 billion monthly users, TikTok could reach $10 billion in in-app spending for 2023.