• by Colin Kirkland , December 11, 2023

Because of the purchase of “coins” that TikTok's in-app virtual currency users buy to tip creators, the short-form video-sharing app has become the first-ever mobile app not focused on gaming to amass $10 billion in consumer spending across Apple's App Store and Google Play, according to a new report by app intelligence company data.ai.

While social apps typically monetize through running ads, data.ai is predicting that more social platforms will make money directly from consumers in 2024. The shift, according to data.ai, will represent a 152% increase in consumer spend for social apps next year.

“TikTok led the way by introducing In-App Purchases to “tip” content creators,” a data.ai spokesperson told MediaPost. “YouTube and Instagram have followed suit.”

The report shows TikTok entering 2023 with over $6.2 billion in consumer spending, then adding an additional $3.8 throughout the past 11 months, marking a 61% growth.

It is important to note, as well, that data.ai's report does not include consumer spending across third-party Android app stores in China, meaning that the ByteDance-owned company likely earned more than $10 billion.

Prior to TikTok, the only other mobile apps to reach $10 billion in consumer spending were all focused on games, including Activision Blizzard's "Candy Crush," Tencent's "Honor of Kings," Supercell's "Clash of Clans" and XFLAG/Mixi's "Monster Strike."

In terms of social platforms, data.ai's report shows Tinder and YouTube coming closest to TikTok's achievement, but still lagging by comparison in consumer spend by $2 and $3 billion, respectively.

Along with its massive global user base, TikTok coins are what sets the app apart in consumer spending.

Users purchase coins in order to gift them to their favorite content creators on the platform. Creators can then trade coins for virtual diamonds and convert them into fiat currency. TikTok retains 50% of the payout amount.

TikTok says that its bundle of 1,321 coins for $19.99 made up about a quarter of its in-app purchase (IAP) revenue in 2023.

Due to TikTok's recent addition of in-app advertising and expanded e-commerce strategy, data.ai predicts the app will reach $15 billion in consumer spend in 2024 -- more than 50% of its current cumulative sum.