The report notes that TikTok entered 2023 with more than $6.2 billion in consumer spending already and then added another $3.8 billion throughout the course of the year, or 61% growth from the year’s start.
The spending comes from TikTok’s in-app purchases of “coins” — a virtual currency that users can spend on gifts for creators on the platform. These gifts reward creators for their content and can be cashed out as fiat currency, with TikTok retaining 50% of the payout.
Its next nearest rivals are Tinder and YouTube, but both trail TikTok by between $2 to $3 billion, the report notes.
Consumers are spending over $11 million per day tipping their favorite content creators.
“TikTokers are poised to spend a 40-hour work week each month in the app by the end of 2024, +22% from 2023,” said Lexi Sydow, head of Insights at data.ai
Marvin Cook
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TikTok becomes first non-game app to reach $10B in consumer spending
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Discussion (1)
Tiktok is genius for this coin virtual currency. While I typically dislike the idea of virtual game currencies, it does offer a direct way to securely support someone on the platform.