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TikTok is a big app, but so are other apps like Genshin Impact, Instagram, Facebook, PUBG, and so on. However, sometimes it’s hard to tell exactly how big an app is until you find out how much money is raking in. According to a new report, ByteDance’s moneymaker has crossed a major milestone. TikTok has accumulated a whopping $10 billion in user spending.
Microtransactions are a prime example of “strength in numbers.” One small 99¢ purchase doesn’t do much for a company. However, if millions of people are making small 99¢ purchases every day, it can mean millions of dollars for the developers. Small transactions can bring companies billions of dollars over the span of years. A few good examples of this are Genshin Impact (more than $4 billion) and Pokemon Go (more than $5 billion).
Well, TikTok took this to a new level by breaking in $10 billion
TikTok officially launched in September 2016 in China, which means that the service is officially seven years old. Its popularity really exploded over the years, making it an international sensation and a thorn in YouTube’s, Instagram’s, and Facebook’s sides. Undoubtedly, it’s stolen a lot of money away from other video sites. Also, it really popularized the vertical scrolling video format.
Thanks to a financial report by Data.AI, it appears that, as of 2023, TikTok has accumulated a whopping $10 billion in user spending. This is across both Android and iOS. In fact, global app spending hit a new high in 2023 with a total of $64 billion in spending. That’s a pretty significant jump from the global spending in 2022, which totaled about $57.5 billion dollars.
A report from Bloomberg states that app spending grew as spending while video games shrunk. Consumers spent a large amount of money streaming apps, dating apps, and apps for making user-generated content. At this point, we only expect app spending to grow this year. Also, we expect YouTube, Instagram, Facebook, and other video streaming apps to take notice and devise new ways to combat TikTok.