The Rise and Reign of TikTok: Poised to Make History as the Highest-Grossing App



by SEDEDIN DEDOVIC

The Rise and Reign of TikTok: Poised to Make History as the Highest-Grossing App
© Mario Tama / Getty Images

The wildly popular Chinese app TikTok is poised to make history as it surpasses $10 billion in global revenue, according to the latest report from Data.ai. The platform's meteoric rise has been fueled by increased user spending and diverse revenue streams that position TikTok as a leader in the digital landscape.

Data.ai's Lexi Sidou predicts that TikTok's revenue will grow to a whopping $15 billion by 2024, reflecting the platform's ability to captivate audiences around the world. Users reportedly spend over $11 million a day to support their favorite content creators, a testament to the app's influential role in shaping internet trends and entertainment.

Key source of income - "coins":

TikTok's financial success is grounded in its unique monetization model, specifically through the sale of "coins." Users can buy these digital coins to exchange for gifts for their favorite influencers, with TikTok keeping 50 percent of the payment.

The most popular choice among users this year was the 1,321 coin bundle, priced at $19.99, accounting for a significant 25 percent of the app's total revenue. In addition to the "Coins" system, TikTok earns revenue through advertising and online shopping, further strengthening its financial position.

This diverse approach differentiates TikTok from other platforms and contributes to its impressive revenue figures.

Competition and dominance:

While dating app Tinder and video-sharing giant YouTube can't approach $10 billion in revenue, TikTok maintains a significant lead, surpassing them by $2 billion to $3 billion.

The app's unparalleled growth and engagement positions it as a formidable force in the digital realm. And she is getting stronger every day. Its financial success is a testament to its huge user base, but also to its innovative revenue streams.

TikTok is on track to become the highest-grossing app in history, leaving an indelible mark on the global digital economy. Although in the previous months TikTok caused great controversy and suffered a lot of criticism, this did not affect its popularity.

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