TikTok users spent over $10 billion on app in 2023

There was a significant increase in mobile app sales revenue in 2023, with TikTok becoming the first app to surpass $10 billion in user spending.

TikTok users have helped mobile app sales reach a new high in a year of revenue. According to Bloomberg, the video-sharing app became the first mobile app to surpass $10 billion in cumulative user spending.

This milestone has been achieved thanks to a system that allows TikTok users to shower their favorite creators with tips. While the app sales revenue was on the rise in 2023, the games industry dealt with a double-digit sales decline in China that dragged global sales down 2%.

TikTok’s in-app credit purchases are to be thanked for $10 billion spending

Bloomberg

This data has been revealed in Bloomberg’s analysis of app spending for 2023. The report also highlighted a surge in smartphone usage, with Indonesia leading the pack, where individuals spent over 6 hours on their smartphones daily.

Among the top 10 markets, the average daily app usage reached 5 hours, with a 3% uptick in app spending throughout 2023. Notably, South Korea, Brazil, Mexico, and Turkey all experienced growth, with consumer app spending increasing by 25% or more for the year.

TikTok benefited the most from the surge in in-app purchases through a system that enables users to tip their favorite creators and live streamers. The report mentions that the social media platform, owned by ByteDance, “unlocked the secret to monetization on mobile.”

“TikTok laid the groundwork through its content creator tipping mechanism. In 2024, direct consumer monetization in social apps through in-app purchases is set to grow 150% to $1.3 billion as competition ramps up,” reads the Bloomberg report.

According to the data, the top downloaded apps in 2023 were Shein and Temu, with Temu claiming the title of the most downloaded app in a whopping 125 markets. Generative AI apps also crossed the milestone of $10 billion in monthly consumer spending by the end of 2023.