TikTok Users Spent $2.3bn in the App
Alison Anderson
19 Jan 2022
n 2021 consumer spending inside TikTok rose up to $2.3 billion. While the world community still considers TikTok as the app supported by ads, the tendency is quickly changing. Sensor Tower reveals the new figures for the 2021 year, and it shows quick growth of in-app earnings.
TikTok reveals impressive earnings in 2021. Compared to 2020, the increase is 77 percent. Consumer spending was equal to $1.3 billion in 2020. This data was taken from the app itself, and its version Douyin which is widely used around China.
Statistics show that the spending significantly differs based on the region. During the 4th financial quarter of 2021 Chinese users of Douyin made 57 percent of total purchases. As for the 4th quarter of 2020, the in-app spending from China was 85 percent. It looks like the geography of in-app purchasing significantly increased in 2021. The second place on this list belongs to the US. Last year, in the 4th quarter the sum spent in-app by American users was $110 million.
Although the news may not sound like a front-pager, it is hard to underestimate TikTok’s ability to gain profit. This year, they’ve promised to work hard to increase the revenues for content creators. With the official statistics that were released, it looks like musicians and other artists have all the chances to make TikTok their new profession. In December 2021 they launched a new program called Creator Next that helps artists to gather tips and gifts from their fans. Ole Obermann, the head of the music department in TikTok, said about TikTok plans to open a new ability to sell the merch inside the app. While there was not much money spent on artists from these $2.3 billion spending in TikTok, users’ willingness to spend money is good news for creators.
Have you ever made purchases via TikTok? Are you willing to support your favorite creators with money? Share your thoughts in the comments below.