The TikTok craze has prevailed over the youth for quite some time now. And looks like the app has billed massively on that craze. The popular short-video app has made a staggering $9 million as revenue from it’s in-app purchases this May. That amounts to a 500 percent year-over-year growth from its previous purchases of $1.5 million and 22% growth from April’s $7.4 million.
Launched in 2017 by ByteDance, the company looks ahead to focus on spiking its user growth. The company hadn’t prioritized it’s in-app purchases previously. India has been one of the rising markets for the media company with its users being more than 200 million currently.
Being in the spotlight for a fair amount of time Tiktok has reportedly gained 88.6 million new users in India alone in the first quarter of 2019. This backs the fact that 50 percent of it’s in-app purchases was a result of Indian users alone.
Undoubtedly the app overtook Facebook to be the most downloaded social networking app, and now looks to lure in more advertisers. Major enterprises including Pepsi, Snapdeal, Myntra, Shaadi.com, and Shopclues have signed on to advertise as per The Economic Times.
TikTok also offers virtual goods which could be purchased with TikTok coins. These are sent to other users and streams to show support. iOS users in China spent $5.9 million whereas the users in U.S added nearly $2 million, or 22%, of the app’s gross revenue.
However the revenue juggernaut could soon show signs of slowing. TikTok hasn’t been in the good books and has experienced brief bans in various countries like Indonesia and India. The Chinese video app was taken down from Apple and Google app stores following orders from the Madras High Court in April this year. The app’s brief departure from the Indian market impacted it’s growth to an extent. The company lost a potential 15 million new users as a result,as per Sensor Tower.
Currently TikTok has 1.2 billion installs, which is a major step ahead from a billion at the end of last year. The numbers do not seem to stop for the time being.
Summer Intern at The Tech Portal. Tech freak but mostly a coffee addict.