Last Updated: June 25, 2022
When it was released, back in 2016, TikTok took the social media scene by storm.
The initial concept of sharing short videos soundtracked by music clips was simple and it has proven to be incredibly popular. In fact, it’s so popular that it’s currently the most downloaded app in the world.
We’ve gathered some TikTok revenue statistics (and other interesting information) to help you understand the app’s impact on the market and how businesses can use it to their advantage.
Fascinating TikTok Facts (Editor’s Choice):
- The average time spent on TikTok by users is 52 minutes per day.
- TikTok has been downloaded more than 2.6 billion times since its launch.
- TikTok influencers usually charge around $2,500 per post if they have more than a million followers.
- Only 5% of marketers use TikTok.
- The application has 689 million monthly users.
- 90% of users access the application multiple times per day.
- TikTok made $540 million in 2020.
TikTok Revenue Statistics
First, let’s see just how much TikTok makes.
1. ByteDance made $34.3 billion during 2020.
(Source: The Wall Street Journal)
TikTok’s parent company, ByteDance, more than doubled its annual revenue to $34.3 billion. This is a 111% increase year over year and includes income from all sources, including apps made for the Chinese market like Douyin and Jinri Toutiao.
2. 79% of TikTok’s revenue comes from China.
While TikTok has diverse revenue streams, China remains the dominant market. The majority of the revenue comes from the Chinese variant, Doujin. The US comes in a distant second with 8% of revenue, and Turkey is third with 3%.
3. TikTok made $540 million during 2020.
This doesn’t include Douyin, ByteDance’s version of the app meant for the Asian market. TikTok net revenue in 2021 will remain dependent on advertising since that is where the majority of the income comes in from. However, in-app purchases should not be ignored. Users do spend money to buy filters and effects so that their posts look more interesting.
TikTok User Statistics
It’s safe to say that TikTok brings a lot of value to its parent company. But let’s take a look at who’s using the app and how much.
4. TikTok has more than 2.6 total billion downloads.
(Source: Wallaroo Media)
How many times has TikTok been downloaded? In terms of monthly downloads, TikTok is growing more than applications like Snapchat and YouTube. In total, it has had more than 2.6 billion downloads since its launch in 2016.
5. TikTok has 689 million monthly active users.
Just four years after launch, TikTok has managed to reach almost 700 million monthly active users. This makes TikTok more popular than Twitter, Reddit, and Snapchat, which have been on the market for much longer.
6. In the first four months of 2021, TikTok had 176 million new users.
(Source: Omnicore Agency)
In Q1 of 2021, TikTok was the most downloaded application in the world.
Just four years after its launch!
The application was the only one in the Top 5 list that is not owned by Facebook.
7. 130 million monthly active TikTok users are from the US.
(Source: Wallaroo Media)
TikTok user demographics show that the US is a major market for the company. Roughly 14% of active users are US-based, and the trend is growing.
8. On average, users spend 52 minutes on TikTok daily.
The TikTok engagement rate is high since users spend, on average, almost an hour on the application every single day.
We get it, funny videos can be addictive.
Have you ever wondered how often people use TikTok?
9. 90% of TikTok users access the application multiple times per day.
(Source: Influencer Marketing Hub)
TikTok users are more active than users of most other applications. Nine out of ten users access the application more than once per day. They usually engage with the app around 4–5 times daily.
10. 25% of US TikTok users are aged between 10 and 19.
The biggest portion of TikTok user demographics consists of young adults and teenagers.
The application was intended for people younger than 18, so it’s not surprising that it’s the largest age group. The age bracket from 10 to 29 accounts for a total of 46.4% of the user base.
Not gonna lie, we feel a bit old now. How long till we start asking GenZ-ers to help us with our phones?!
11. TikTok is available in 141 countries.
TikTok is available in seven languages and 141 countries. There is also an Asian version of the application called Douyin that’s available in 14 countries.
TikTok Revenue Growth Trends
A lot of people are using TikTok, so it’s no wonder it can’t seem to stop growing at an incredible rate.
12. ByteDance, the parent company of TikTok, had a growth rate of 111% in December 2020.
In December 2020, ByteDance more than doubled its revenue year-on-year.
This is huge! It’s already eclipsing some companies that have been in the market for far longer.
TikTok launched in 2016 and was a significant part of ByteDance’s success.
13. 2021 promises to be even better than 2020 for TikTok.
2020 was great for TikTok!
It was the most downloaded app for both Android and iOS, and TikTok stats for 2021 predict 1.2 billion active users by the end of the year.
14. ByteDance is trading at a valuation of $425 billion.
The high valuation has spurred speculation on a possible future IPO. The $425 billion valuation puts ByteDance ahead of Walmart and Mastercard. This is a massive growth compared to the March 2020 valuation of 140 billion.
15. TikTok in-app spendings by users increased by 74% in the first half of 2021.
User spending increased to $920 million during the first half of 2021. This shows that TikTok’s year-over-year growth is increasing rapidly due to user spending. These numbers include its Chinese variant, Douyin.
TikTok Statistics for Businesses
TikTok is so popular that practically everyone wants a piece of that pie.
16. 63% of high-CTR TikTok ads put their message upfront.
The first three seconds of a video are critical. TikTok statistics indicate that almost two-thirds of ads show a product or message at the very beginning of a video.
17. Expanded emotional range leads to more conversions.
Content creators who show multiple emotions in a span of a single video lead to much more conversions. TikTok conversion rates are 3.3 times higher when talent shows four or more emotions than when they show three or fewer.
18. Brand takeovers cost more than hashtag challenges.
Brand takeover campaigns on TikTok cost at least $50,000 per day, while hashtag challenges go for around $150,00 per week. Of course, the former does guarantee 5 million impressions, but it may not be suitable for every company or every campaign.
19. Half of the top 10 videos were created by TikTok.
All of them were promoting an upcoming event, and each of them drew more than 100 million views. Considering how high TikTok engagement rate is, it’s guaranteed they were a resounding success.
While TikTok has a massive market share and it’s incredibly successful, there have been concerns regarding user privacy.
20. Before it was banned, 30% of TikTok’s downloads came from India.
(Source: The Verge)
In June 2020, India banned the use of TikTok, deeming it harmful to the sovereignty and integrity of the country. The Indian government cited the Information Technology Act, saying that “various sources” complained that the app was stealing and transmitting data in an unauthorized manner.
As a result, TikTok was removed from Google and Apple play stores, and India’s 169 million TikTok users can no longer use the app. Despite this massive hit, TikTok annual revenue continues to grow.
21. The US military banned the use of TikTok.
(Source: Business Insider)
All US military branches and the Pentagon banned the use of TikTok by their personnel, citing security concerns. The ban only applies to government-issued devices, however. US service people are still allowed to use it on their private devices.
23. BTS holds the Guinness record as the fastest to get 1 million followers.
(Source: Guinness World Records)
Kpop sensation BTS holds the TikTok World Record for the fastest to get to 1 million followers. They joined the application on September 25th. They hit the million follower mark in just 3 hours 31 minutes.
TikTok Advertising Statistics
You’d think every marketer in the world is looking at TikTok, trying to figure out the best way to advertise on the platform. It turns out that’s not quite the case.
24. Only 9% of marketers use TikTok.
(Source: Social Media Examiner)
TikTok advertising costs show that marketers continue to fail at understanding how to incorporate this platform. While TikTok is a great platform with millions of users, high engagement, high activity, and a young target market, 91% of marketers don’t use the application, and 68% don’t plan on using it in the next year.
That means that there’s much less competition and that savvy marketers can get a lot by focusing on the app.
25. TikTok influencers usually charge around $2,500 per post if they have more than one million followers.
(Source: Influencer Marketing Hub)
The average Tiktok influencer earnings show that they can make over $2,500 per post if they have more than one million followers.
26. TikTok offers six different kinds of advertisements.
TikTok offers in-feed native content, TopView ads, brand takeovers, branded hashtag challenges, branded effects (lenses), and influencer collaborations. With different types of advertisements, brands can expand their reach to millions of users.
If TikTok revenue statistics are any indication, engagement is high across the board since a lot of users participate in these advertisements enthusiastically.
What are you waiting for?
TikTok is home to a variety of content, from people using cups as shoes and musicians harmonizing sea shanties to political ideologies compressed into fun, one-minute soundbites. And these are just some examples.
It’s clear that people like entertaining and being entertained, and TikTok captured the zeitgeist in the right format to become a market leader.
Facebook’s revenue is still higher, but TikTok is catching up quickly. 2020 was a really strong year for TikTok, and 2021 promises to be even more so. It’s been continuing to exceed expectations since it was founded, but will it manage to stay afloat among a sea of social media platforms?
Time will tell.
Until then, you can use our TikTok revenue statistics to plan your next marketing strategy. Till next time!
- Business Insider
- Guinness World Records
- Influencer Marketing Hub
- Influencer Marketing Hub
- Omnicore Agency
- Social Media Examiner
- The Verge
- The Wall Street Journal
- Wallaroo Media