TikTok becomes the first app to reach $10 billion in-app spending in 2023
Bloomberg posted an analysis of app spending for 2023, revealing an 11% rise in revenue. Demand for video platforms drove the increase, while games were down 2% on a yearly basis. The data reveals TikTok surpassed $10 billion in in-app spending, making it the first app to reach this threshold.
The milestone was achieved through a system, allowing users to tip their favorite creators and live streamers. Market researchers said the ByteDance-owned social media “unlocked the secret to monetization on mobile”.
Spending in apps, rather than games, grew in 2023, as users paid more for streaming, user-generated content and dating apps. However, the biggest revenue driver on mobile remained advertising – two-thirds of mobile sales were for mobile ads, reaching $362 billion, which was 8% more than in 2022.
Consumers remained for longer on their smartphones, the analysis also revealed. Indonesia ranked highest among countries, with an average of over 6 hours per person daily. The average in the top 10 markets hit 5 hours of daily app usage, and spending increased 3% as well.
The most downloaded apps were Shein and Temu, the latter being the most downloaded app across 125 markets. Elsewhere, travel and ticketing sectors saw a rebound in popularity and spending. According to the data, generative AI apps surpassed $10 billion in monthly consumer spending by late 2023.
