TikTok is the first app to surpass $10 billion in spending through in-app purchases
January 11, 2024

TikTok is the first app to surpass $10 billion in spending through in-app purchases

Milestones in the consumer society continue to grow, so a new analysis of spending in mobile applications reaches new records and an increase in revenue of 11 percent. The increase was driven by demand for video platforms, with games down two percent year-on-year. According to the same data, TikTok is the first app in the world to exceed $10 billion in spending through in-app purchases, according to the Bloomberg portal, which also published the analysis.

The milestone was achieved through a system that allows TikTok users to tip their favorite creators and accounts that stream live content. Marketing researchers said the social network, which is owned by Chinese company ByteDance, has “unlocked the secret of mobile monetization.”

Spending on apps, rather than games, increased in 2023, as users paid more for streaming content and dating apps. However, the biggest driver of revenue on mobile devices remains advertising – two-thirds of mobile device sales come from mobile ads, reaching as much as $362 billion, which is eight percent more than in 2022.

The analysis also revealed that consumers were spending more time on their smartphones. Indonesia topped the list of countries in this regard, with an average of over six hours a day per person. The average time spent using apps in the top 10 markets was five hours a day, and consumption also increased by three percent. The apps that people worldwide downloaded the most to their devices were Shein and Temu, with the latter ranking first in 125 different markets.

On the other hand, the travel and ticketing sector experienced an increase in popularity and consumption. Of course, there’s artificial intelligence, and according to data, generative AI applications will exceed $10 billion in monthly consumer spending by the end of 2023.