TikTok and its Chinese counterpart Douyin reached $6 billion in in-app purchase (IAP) revenue in 2024, becoming the first non-game mobile app to achieve this milestone. This revenue comes from users spending money on TikTok's internal features, such as sending virtual gifts to favorite content creators or paying for certain platform functionalities.
In the fourth quarter of 2024 (October-December), TikTok set a historic record by generating $1.9 billion, a significant portion of its annual revenue. This achievement sets TikTok apart from other popular apps. In 2024, TikTok led the ranking of the highest-earning apps and games. For instance, Monopoly GO, which ranked second, earned $2.6 billion in annual revenue, less than half of TikTok's total.
While TikTok was the highest-earning app globally, in the fourth quarter of 2024, it ranked second in terms of downloads. Instagram took the top spot, followed by WhatsApp, Facebook, and Temu. This shows that while TikTok has a high spending rate among its users, it lags behind some social media platforms in terms of overall download numbers.
The revenue calculation for TikTok also includes its Chinese version, Douyin. Both apps are owned by the same parent company, ByteDance, but there are significant differences between them:
Douyin operates solely in China and is tailored to comply with the country’s strict internet regulations.
TikTok, on the other hand, is designed for an international audience and follows a different content policy.
Douyin has more robust e-commerce features, allowing users to buy and sell products directly within the app. TikTok, however, has limited e-commerce capabilities.
TikTok’s record earnings reflect its financial success. In 2023, TikTok became the first non-game app to surpass $10 billion in total consumer spending. Now, with $6 billion in annual revenue, TikTok proves to be one of the rare platforms in the mobile app market that can generate high income without relying on games.
