TikTok revenue passes $10bn for 2024
Figures from app-tracking website data.ai has shown that TikTok has become the first non-gaming app to make $10 billion in revenue from its users.
TikTok is the first non-gaming app to pass this benchmark, and in so joins a club that counts Candy Crush Saga (more than $12 billion in revenue), Honor of Kings ($11 billion), Monster Strike ($10.6 billion) and Clash of Clans ($10.2 billion) as members.
The social video app – owned by Chinese copmany Bytedance – uses a variation on the freemium revenue model: The app itself is free to use, but users can support their favourite content creators with virtual gifts that can be puchased in-app and exchanged for real money.
In 2023, a bundle of 1,321 tokens for $19.99 was the most popular. The bundle made up about a quarter of the annual revenue.
Buying virtual money with real money is mostly a familiar revenue model with gaming apps, which is why the four gaming apps reached that milestone earlier than TikTok. For a social media platform, it is hardly used in such a way.
According to data.ai, TikTok is projected to pull in $15 billion in revenue from in-app purchases next year, making it the most lucrative app in the world. In addition, TikTok makes money from advertising revenue through ads and recently opened a web shop. So ByteDance’s actual revenue is even higher.
Two other apps are getting close to TikTok. Both Tinder and YouTube are climbing toward $10 billion in consumer spending, but fall between $2 billion and $3 billion short.
While TikTok’s evolution from music platform to video platform and full-fledged social medium is doing wonders for the company. Other social media platforms such as Facebook, Instagram and especially X are struggling to get users to pay for additional services or premium subscriptions.
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