TikTok Revenue: First App to Hit $6 Billion in Consumer Spending

TikTok's Record-Breaking Revenue in 2024

In 2024, TikTok, alongside its Chinese version Douyin, achieved a significant milestone. It became the first application that isn't a game to generate $6 billion in revenue from in-app purchases within a single year.

Record Fourth Quarter Performance

Data from Sensor Tower, a leading app intelligence firm, indicates that TikTok’s gross in-app purchase (IAP) revenue reached a record high of $1.9 billion during the fourth quarter of the previous year.

Comparison to Other Top Apps

Throughout the entire calendar year, only YouTube and Google One subscriptions exceeded TikTok’s fourth-quarter IAP revenue among applications outside of the gaming category.

Dominating the Market

TikTok’s $6 billion in IAP revenue for 2024 is more than double the earnings of any other app or game. Monopoly GO, for instance, secured the second position with $2.6 billion in revenue over the past year.

Year-Over-Year Growth

The annual IAP revenue of TikTok in 2024 demonstrates substantial growth compared to the previous year. It represents an increase from the $4.4 billion earned in 2023.

Download Rankings

However, when considering downloads, TikTok ranked second in Q4 2024. Instagram led the charts, followed by WhatsApp, Facebook, and Temu, completing the top five.

TikTok and Douyin: A Closer Look

A direct comparison of TikTok with other apps requires acknowledging its relationship with Douyin, its Chinese counterpart. Although both are owned by ByteDance, they cater to distinct audiences and offer different experiences.

Douyin is specifically designed for Chinese users, operates under stricter regulatory controls, and places a greater emphasis on e-commerce. Both platforms center around short-form video content, but TikTok is geared towards an international viewership.

U.S. Market Access

In the United States, TikTok has been reinstated in app stores after a ban was delayed by President Trump. Concerns regarding national security initially prompted the proposed ban, but an executive order postponed it for 75 days, with potential for further extension.

The Creator Economy Impact

TikTok’s revenue underscores the app’s growing importance within the creator economy. Users actively invest money in virtual gifts for creators, which are then convertible to traditional currency. TikTok retains 50% of these payouts.

Previous Milestones

TikTok has previously reached significant revenue milestones, including becoming the first non-game app to surpass $10 billion in total consumer spending in 2023.