TikTok's cumulative revenue reaches $10 billion, all from user tips!

When ByteDance became the first mobile application to exceed $1 billion in global consumer spending in a quarter, it is not difficult to imagine that 2023 will be a glorious year for ByteDance.According to data released by data.ai, a data analysis company, ByteDance's user spending has exceeded $6.2 billion before entering 2023. Since the beginning of this year, user spending has increased by $3.8 billion, all of which comes from user rewards.In other words, since its launch, ByteDance has accumulated $10 billion in user spending, and currently only five applications (including ByteDance) have reached this level. ByteDance is the first non-mobile game app to achieve this goal.The other four apps that have achieved this goal are Activision Blizzard's mobile game "Candy Crush Saga" (with user spending exceeding $12 billion), Tencent's "Honor of Kings" (with user spending of $11 billion), Japan's mixi Corporation's "Monster Strike" (with user spending of $10.6 billion), and Supercell's "Clash of Clans" (with user spending of $10.2 billion).It is worth noting that the revenue growth supporting ByteDance is virtual coins. Users can purchase different amounts of coins through in-app purchases (IAP) and use these coins to buy virtual gifts for content creators on the platform. The creators then convert these virtual gifts into virtual diamonds and finally cash out. In this process, ByteDance retains 50% of the reward amount as its own revenue.Data.ai's intelligence shows that the best-selling IAP for ByteDance in 2023 is a gift pack containing 1321 coins, priced at $19.99. This gift pack is so popular that it contributes a quarter of ByteDance's IAP revenue.In addition, ByteDance's user spending is expected to accelerate in 2024. Data.ai predicted last week that ByteDance's user spending will reach $15 billion by then, 50% higher than the current cumulative spending.Lexi Sydow, Director of Insights at the organization, said:"ByteDance is expected to become the highest-grossing app in history, approaching the $1.5 billion revenue milestone by 2024. Consumers spend over $11 million a day to reward their favorite content creators, which drives ByteDance's development."According to data.ai, it is also predicted that by the end of 2024, ByteDance users will have a weekly active time of up to 40 hours, an increase of 22% compared to 2023.