Tiktok, which includes China's counterpart Douin, became the first non-game app to reach $6 billion in in-app purchase revenue in 2024 in one year. According to a new report from App Intelligence Provider Sensor Tower, Tiktok generated a record high of $1.9 billion in total purchases (IAP) revenue within APP in the fourth quarter of last year.
Among the non-games, only YouTube and Google One subscriptions were able to surpass Tiktok's fourth quarter total for the entire calendar year, the report said.
IAP revenues were $6 billion, generating more than twice the revenue from other apps and games in 2024. For example, Monopoly Go has ranked second in the past year with $2.6 billion.
Tiktok's annual IAP revenue for 2024 was similarly significantly higher than last year. It's up from $4.4 billion in 2023, the report says.
However, in terms of downloads, Tiktok was only second in the fourth quarter of 2024, and Instagram became No. 1. Then came WhatsApp, Facebook and Temu, which concluded the top five.
The comparison with other apps on Tiktok is a bit uneven as it includes a Chinese sister app, Douyin. Despite having Baitedan, the parent of the same company, the two apps offer different experiences. Douyin's content is tailored to Chinese audiences, with stricter controls due to Chinese regulations, and focuses on e-commerce. Both focus on short form videos, with Tiktok being designed for international audiences.
In the US, Tiktok returned to app stores after President Trump delayed the deadline for banning apps from the market over national security concerns. The executive order delays the ban for 75 days, suggesting that Trump could extend it if necessary.
Tiktok's revenue is another example of how important apps have become to the creator economy. Users spend real money to buy a virtual gift for creators. Virtual gifts will be cashed in Fiat currency, with Tiktok holding 50% of payments.
The short video app has hit several revenue milestones so far, including in 2023, when it became the first non-game app to reach $10 billion in consumer spending.