TikTok sets a new ‘billion dollar record’ worldwide – Times of India

TikTok parent ByteDance has achieved a significant milestone. The Chinese short video sharing platform became the first app to surpass $10 billion in cumulative consumer spending. According to the latest annual report by data.ai, this achievement has also contributed to a new high in mobile app sales, at a time when the gaming industry has witnessed a decline in revenue, a
In 2023, popular video-streaming platforms like TikTok and Disney+ drove consumer app sales that saw an 11% increase. This growth indicates the strong demand for such apps. Meanwhile, the gaming industry in China experienced a double-digit decline in sales. This also affected global sales in gaming which reduced by 2%.
How TikTok was able to achieve this feat
TikTok’s revenue primarily comes from in-app purchases of credits. The app allows its users to utilise these credits to tip their favourite creators and live streamers. Market researchers have claimed that this approach has unlocked the secret to successful monetisation on mobile platforms. Many leading brands rely on data.ai’s services to track the performance of their mobile apps and advertisements.
Lexi Sydow, the director of corporate marketing and insights at data.ai, highlighted the contribution of social apps and the creator economy in paving new avenues for monetisation beyond traditional advertising.

TikTok has laid the foundation for this trend through its content creator tipping program. In 2024, as competition intensifies, direct consumer monetisation through in-app purchases in social media apps is projected to grow by 150% to reach $1.3 billion.

App usage behaviours amongst users
The report also revealed that consumers are spending more time on smartphones, with Indonesia leading the way at over 6 hours per person per day. The average daily app usage among the top 10 markets reached 5 hours.
Additionally, app spending increased by 3% in 2023. South Korea, Brazil, Mexico, and Turkey experienced significant growth, with consumer app spending increasing by 25% or more, the report adds.
While the gaming sector witnessed a decline, consumer spending in apps, particularly in streaming, user-generated content, and dating apps, showed growth.
However, advertising remains the primary revenue driver, with an 8% increase in 2023, amounting to $362 billion and accounting for two-thirds of mobile sales. In 2024, global mobile ad spending is estimated to reach $402 billion, making user attention a critical factor for success.
Chinese budget shopping apps, Shein and Temu, developed by PDD Holdings Inc., saw a remarkable surge in download rankings, growing by 140%. Temu emerged as the leader in downloads across 125 markets.
Furthermore, the travel and ticketing sectors experienced a rebound in popularity and spending as the demand for in-person events and experiences increased post-pandemic.