TikTok Beats Competitors by 2X with $6B In-App Revenue via @sejournal, @MattGSouthern
TikTok leads mobile commerce with $6B revenue, doubling rivals through personalized shopping experiences and creator partnerships. The post TikTok Beats Competitors by 2X with $6B In-App Revenue appeared first on Search Engine Journal.
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TikTok, including Douyin in China, earned $6 billion in in-app purchases last year, more than double any competitor, according to Sensor Tower’s Q4 Digital Market Index.
This marked a 36% increase from the previous year, showcasing TikTok’s growing financial dominance in mobile commerce.
Mobile App Market Growth
Global in-app purchase revenue reached $39.4 billion in Q4 2024, up 13.5% year over year. Total 2024 revenue reached $150 billion (+12.5% from 2023).
Non-gaming apps grew faster, with revenue up 28.2% to $19.2 billion. The revenue gap between apps and games narrowed to just $1 billion, down from $5 billion a year earlier.
TikTok’s Commerce Transformation
Recent Ipsos research commissioned by TikTok reveals how the platform reshapes commerce behavior.
The study of nearly 4,000 US consumers found that 73% of TikTok shoppers value the platform’s personalized recommendations, with three-quarters agreeing it’s their go-to place for discovering new brands and products.
Discovery Engine Drives Purchases
TikTok’s approach to discovery helps drive in-app sales.
Two main components of product discovery on TikTok include:
Personalized For You feed: 68% of TikTok shoppers say the personalized content allows for greater product discovery Intent-based search: Nearly 1 in 4 users search for something within 30 seconds of opening the appThis discovery system translates to sales. 70% of TikTok shoppers report purchasing after seeing an ad or shoppable content on the platform.
The Authenticity Factor
TikTok’s commerce success is built on trust.
Ipsos found that 74% of users believe TikTok’s creator content feels authentic, which is higher than that of other platforms.
Aaron Jones, Liquid I.V. VP of E-commerce & Media, explained how this authenticity drove results:
“An affiliate creator created an honest review that took off, resulting in a sales lift across omnichannel and a full sell out of the flavor with over 59K total orders on TikTok Shop. Of the purchasers, 88% were new customers.”
Actionable Strategies for Marketers
The Ipsos research identifies three key strategies for brands:
Capture immediate purchases with in-app commerce: Use TikTok Shop for shoppable videos, LIVE Shopping, and affiliate partnerships Maximize e-commerce with always-on tactics: Create full-funnel experiences between TikTok engagement and external purchases Drive commerce everywhere with hybrid strategies: Facilitate seamless journeys across physical and online environmentsPlatform Context
iOS accounts for 70% of in-app revenue ($27.5B), while Google Play leads in downloads with 73.6% market share despite hitting its lowest download count (25.1B) since Q1 2020.
TikTok ROI
A recent study by Dentsu showed that TikTok gives advertisers the best short-term ROI in Nordic markets.
The study found that TikTok produced an ROI of 11.8. This means that brands earned almost 12 times their initial investment in sales revenue within six weeks of advertising on the platform.
Brands that consistently used TikTok as an always-on channel instead of running occasional campaigns saw better sales results and higher returns.
Looking Ahead
In 2025, TikTok is becoming an essential platform for digital marketers due to its solid monetization strategies, noteworthy ROI metrics, and expanding role in commerce.
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