TikTok is the first social media app to generate $10 billion in revenue from consumer in-app purchases. This is reported by analyst firm data.ai. Tinder has already generated almost $8 billion this way and YouTube about $7 billion.
TikTok is said to make the most money from in-app purchases in the United States and China: about $6 billion. The American and Chinese markets would according to data.ai account for approximately 60 percent of sales. Saudi Arabia, Germany, the United Kingdom and Japan are also said to be lucrative markets for the Chinese social media platform.
TikTok offers TikTok Coins as an in-app purchase. Through these virtual coins, TikTok users can buy virtual gifts for other members of the platform. These coins can also be exchanged for virtual diamonds, which can then be converted back into money.
According to data.ai, there are currently five mobile apps that have each generated more than $10 billion in revenue through in-app purchases: Clash of Clans, Candy Crush Saga, Honor of Kings, TikTok and Monster Strike. Candy Crush Saga is said to have generated approximately $12 billion. Clash of Clans is said to have earned $10.2 billion, Honor of Kings has already earned $11 billion and Monster Strike $10.6 billion. All of these apps, apart from TikTok, are mobile games. The analyst firm believes Tinder and YouTube are also on track to generate $10 billion.
Number of months before apps generate $10 billion in revenue from in-app purchases. Source: data.ai