TikTok Achieves Historic Milestone: In a groundbreaking move, TikTok has become the inaugural non-gaming app to reach a monumental $10 billion in global consumer spending, paving the way to potentially become the highest-earning app of all time. The four other apps achieving this feat are gaming giants: Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans.
Candy Crush currently holds the title of the highest-earning app, amassing over $12 billion in lifetime user spending, as reported in a new study by app intelligence provider data.ai. This significant achievement is based on revenue generated from both Google Play and Apple’s iOS App Store. However, TikTok is poised to surpass even this gaming giant.
According to Lexi Sydow, Head of Insights at data.ai, TikTok is on track to hit the $15 billion mark in 2024, making it the highest-earning mobile app in history. The platform’s users are consistently spending over $11 million daily, primarily through in-app purchases of “coins.” These coins are used to purchase gifts for content creators, with TikTok retaining 50% of the payout when gifts are cashed out.
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TikTok’s most popular in-app purchase this year, a bundle of 1,321 coins priced at $19.99, constitutes a significant portion of the app’s in-app revenue, accounting for about a quarter. Beyond in-app spending, TikTok also generates revenue through advertising and e-commerce.
As 2023 concludes, data.ai identifies Tinder and YouTube as the next closest apps to the $10 billion milestone, trailing TikTok by $2 to $3 billion. TikTok, owned by China’s ByteDance, has recently secured two consecutive court victories in the United States, potentially making it more challenging for critics to impose restrictions. Despite global concerns about its Chinese connections and allegations of causing mental health issues among teen users, TikTok continues to dominate the app landscape.
Our Reader’s Queries
How did TikTok become successful?
TikTok’s success can be attributed to a multitude of smart decisions. Its user-friendly video creation tools have blurred the line between creators and consumers, surpassing YouTube’s capabilities. Additionally, its extensive collection of licensed music has given teenagers the freedom to add soundtracks to their clips without any copyright concerns. With endless possibilities, TikTok has become a phenomenon in the social media world.
When did TikTok become popular?
In 2018, TikTok made a significant move towards global domination by surpassing Facebook, Instagram, Snapchat, and YouTube in downloads. The following year, it secured its position as the fourth most-downloaded non-gaming app worldwide.
What makes TikTok special?
TikTok is a widely used social media platform that enables users to produce, view, and distribute 15-second videos captured on mobile devices or webcams. The app’s unique feature is its customized feeds of amusing short clips that are accompanied by music and sound effects, making it highly addictive and engaging. Its popularity is due to its ability to keep users hooked with its personalized content.
What is TikTok’s revenue?
TikTok has been on a meteoric rise, with 1.5 billion monthly active users as of 2023. Experts predict that this number will reach 2 billion by the end of 2024. The platform’s annual revenues have also skyrocketed, going from $63 million in 2017 to an impressive $9.4 billion in 2023. It’s clear that TikTok is a force to be reckoned with in the social media world.