TikTok, the short-form video hosting giant, has emerged as the first non-game mobile application to exceed US$10 billion in consumer spending.

According to data.ai, a company that uses artificial intelligence (AI) to aggregate and showcase consumer and market data, TikTok, already a global sensation, has witnessed an unprecedented surge in consumer spending, adding nearly US$4 billion to its revenue in the current year alone. This growth represents a remarkable 61 per cent increase from the beginning of 2023, outpacing the previous year’s sum of US$3.3 billion by 15 per cent.

TikTok’s financial ascent places it among the elite ranks of mobile apps, joining the exclusive US$10-billion club alongside gaming giants such as Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans, and stands ahead of its closest contenders, Tinder and YouTube, with a significant lead of US$2 billion to US$3 billion in consumer spending.

The United States and iOS users in China emerge as the primary contributors to TikTok’s financial success, collectively accounting for 60 per cent of the app’s total revenue. Other key markets in the top five include Saudi Arabia, Germany, the United Kingdom, and Japan.

The driving force behind TikTok’s remarkable revenue stream is its in-app currency—TikTok coins. Users utilise these coins for various one-time in-app purchases, which are primarily virtual gifts for content creators. The creators, in turn, can convert these virtual gifts into real currency, with TikTok retaining 50 per cent of the pay-out amount.

Looking ahead, the future appears even more lucrative for TikTok, as projections suggest the app is on track to reach US$15 billion in consumer spending in 2024.

Lexi Sydow, head of insights at data.ai, commenting on TikTok’s financial trajectory, said TikTokers are poised to spend the equivalent of a 40-hour work week each month in the app by the end of 2024, +22 per cent from 2023; making TikTok poised to become the highest-earning mobile app ever — approaching the US$15-billion milestone in 2024.”