Short video platform TikTok has reached a new milestone in the mobile app world. By reaching the highest annual in-app purchase (IAP) revenue among non-gaming applications as of 2024, TikTok has broken the rules in the industry. So how much revenue did the platform generate and how does it differ from its competitors? Here are the details…
TikTok generated $6 billion in revenue in 2024
According to the latest report published by mobile app and game research company Sensor Tower, TikTok generated a total of $6 billion in in-app purchase revenue throughout 2024. This figure is a record not only in the gaming sector, but among all mobile applications.
The platform generated $1.9 billion in revenue in the last quarter of 2024 alone, leaving giants like YouTube and Google One behind. This figure, achieved throughout the year, showed a 36 percent increase compared to 2023. TikTok’s annual in-app spending in 2023 was $4.4 billion.
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TikTok’s revenue clearly shows its difference when compared to other applications in the sector. For example, Monopoly GO, the game that earned the most revenue in 2024, fell behind TikTok by earning only $2.6 billion. The Chinese social media giant’s earnings are more than double that of its closest competitor.
However, TikTok is not at the top in terms of downloads. While Instagram was the most downloaded application in the last quarter of 2024, TikTok came in second. It was followed by WhatsApp, Facebook and e-commerce platform Temu.
A large part of TikTok’s revenue model is based on virtual gifts that users send to creators. Users buy virtual gifts through TikTok, and these gifts can be converted into cash by creators. However, the company keeps 50 percent of the payments made.
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