In 2023, TikTok achieved a significant milestone by surpassing $10 billion in user spending, marking a remarkable year for mobile spending.
Despite a decline in game-related spending, an 11% increase in consumer app sales was observed, attributed to the popularity of video-centric platforms such as TikTok and Disney+.
In-app spending on TikTok serves various purposes, including tipping creators and purchasing trending products. This form of monetization has become crucial for many in-app creators, who can also earn a percentage of sales generated through links shared in their videos.
TikTok facilitates easy product linking through yellow buttons at the video bottom, directing users to TikTok Shop.
The director of corporate marketing at data.ai, Lexi Sydow, highlighted the role of social apps and the creator economy in pioneering alternative monetization pathways beyond advertising.
Predictions for 2024 indicate a 150% growth in direct consumer monetization through in-app purchases, reaching $1.3 billion.
While app spending aligns with increased user engagement in streaming, advertising remains the primary revenue driver, constituting two-thirds of mobile sales in 2023.
Looking ahead, data.ai estimates a global mobile ad spending of $402 billion in 2024, reflecting the ongoing trend of heightened mobile usage, exemplified by British users spending an average of 27 hours per month on their phones in 2023.
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