TikTok, the popular short-form video app, was the leader in in-app purchases in the US in 2022, generating about $780 million in app-store revenue.
Users can buy products on TikTok using the credit-card information already stored in app stores. These purchases include virtual gifts, subscriptions, and other items.
TikTok’s in-app revenue comes from TikTok Coins, the platform’s virtual currency. Users can use TikTok Coins to do things like send virtual gifts to influencers on the platform.
TikTok also makes a lot of money from advertising, bringing in an estimated $6 billion last year.
A separate report from Data.ai found that TikTok surpassed $1 billion in global consumer spend through in-app purchases in the first quarter of 2023. This is the first time an app has ever cleared this benchmark.
Apple and Google take around 30% of in-app purchase revenue, as each gets a cut of purchases made through their respective app stores.
Data.ai also found that subscriptions are becoming increasingly popular on app stores. In the first quarter of 2023, subscriptions accounted for almost a third of in-app spend on iOS.
App Stores as a One-Stop Shop for Subscriptions
App stores are becoming a “one-stop shop” for subscriptions, said Lexi Sydow, head of insights and analytics at Data.ai. Consumers are “subscribing increasingly on their phone, just because it’s easier and simpler.”
This trend is likely to continue as more and more apps offer subscription-based services.
How to Tap into TikTok’s Power to Increase Revenue for Your Business
Here are a few ways business owners can tap into TikTok to increase revenue:
- Create engaging content. TikTok is a visual platform, so it’s important to create content that is visually appealing and engaging. This could include short videos, GIFs, or even memes. The content should be relevant to your target audience and should be something that they will want to watch and share.
- Use relevant hashtags. Hashtags are a great way to get your content seen by more people. When you use relevant hashtags, your videos will show up in search results for those hashtags. This will help you reach a wider audience and drive more traffic to your profile.
- Run TikTok ads. TikTok ads are a great way to reach a targeted audience and promote your products or services. You can target your ads by demographics, interests, and even keywords. This will help you ensure that your ads are seen by people who are most likely to be interested in what you have to offer.
- Partner with influencers. TikTok influencers are people who have a large following on the platform. Partnering with an influencer is a great way to reach a new audience and promote your products or services. When you partner with an influencer, they will create content about your brand and promote it to their followers.
- Host challenges. Challenges are a great way to get people talking about your brand and participating in your content. When you host a challenge, you create a hashtag and challenge people to create videos that follow a specific theme. This is a great way to get people involved and generate buzz around your brand.
