TikTok user spending increases 500% year-on-year
The users are making even more in-app purchases on TikTok, the famous lip-sync application. The latest statistics show an increase of about 500% in user spending compared to the amount from last year.
According to the most recent data from SensorTower, a mobile app data analytics company, TikTok is now reaping a significant amount of money through in-app purchases. According to the data, the company saw $9 million in revenue from the purchases which users made on the platform last month. This amount dwarfs the amount from May of last year when it stood at a meager $1.5 million.
The in-app purchases of May show an impressive growth of 22% compared to the spending of April. Just in a month’s time, TikTok saw the user spending increase from $7.4 million to $9 million. A great portion of spending from last month came from Chinese users on iOS. This portion of users alone spent about $5.9 million of the total amount. The spending was mostly made on digital goodies which were gifted by followers to different influencers to show appreciation.
The increase in user spending on the platform indicates increasing user liking of the platform and their readiness to spend on it. It would be worth mentioning here that the app doesn’t focus much on in-app purchase mode for revenue generation. Rather, the company relies heavily on external advertisers who come attracted to the platform because of the huge user base which is then targeted.
According to the statistics from the same report, the application has been installed a total of 1.2 billion times. A significant number of these users is said to come from India. The company recently mentioned that the application had about 200 million users in India. The application was briefly banned in India back in April, the Indian court, however, lifted the ban afterwards.