NIXSolutions: TikTok’s Rapid Rise in User Spending

TikTok, the short video platform, has witnessed an astonishing surge in user spending, rivaling popular mobile games. In 2021, the app achieved a significant milestone by reaching 1 billion monthly active users, distinguishing itself as the first non-game mobile app to amass around $10 billion in user spending across the Apple App Store and Google Play combined.


A Competitive Landscape

The report by highlights that only gaming giants like Candy Crush Saga, Honor of Kings, Monster Strike, and Clash of Clans have surpassed TikTok’s impressive financial benchmark. King/Activision Blizzard’s Candy Crush Saga, for instance, has exceeded $12 billion in user spending.

Explosive Growth and Revenue

Entering 2023 with a staggering $6.2 billion in user spending, TikTok experienced a remarkable 61% year-over-year increase, amassing an additional $3.8 billion throughout the year, surpassing the 2022 figures by 15%. It’s worth noting that the report’s data encompasses consumer spending on TikTok solely on iOS and Google Play, excluding third-party Android app stores in China.

The Mechanics of Spending

Users on TikTok transact using “coins,” a virtual currency primarily utilized for purchasing gifts for creators. These gifts serve as rewards for engaging content and can be converted into cash. However, TikTok retains a substantial 50% commission from these payments, with the most popular in-app purchase being a 1,321-coin set priced at $19.99, contributing a significant portion to the user spending pie.

Market Insights and Projections

The bulk of in-app spending comes from US consumers and iOS users in China, each contributing approximately 30% of the revenue. Other countries like Saudi Arabia, Germany, the UK, and Japan collectively account for 13% of in-app purchase revenue. Comparatively, other non-gaming apps like Tinder and YouTube fall far behind TikTok in terms of user spending. anticipates a continued upward trajectory in spending on TikTok, forecasting a remarkable surge to $15 billion by 2024, adds NIXSolutions. This projection underscores the platform’s sustained growth and dominance in the realm of user spending, setting new benchmarks in the non-gaming app landscape.