TikTok app is a lip-sync application through which users are making more in-app purchases and this is how its spending is 500% more than last year. In this way, TikTok has adapted a new advertising strategy by raising the in-app purchases.
According to reports from SensorTower, the increase in this proportion is around $9 million in the month of May 2019. This Revenue growth through in-app purchases is 500% in comparison to last May 2018, when it was $1.5 million.
Moreover, there is a growth in this revenue of 22% in one month too. In April the spending through TikTok in-app purchase was $7.4 million which has now increased to $9 million in May.
TikTok Spending Growth From India, China and the U.S
TikTok has received most of the growth and engagement from India. In India, there are 200 million users of this app. Out of these 120 million are the active users. It has become the most downloaded social media networking app in India and it has attracted more advertisers.
According to The Economic Times, TikTok has signed advertisement with famous brands like Pepsi, Snapdeal, Shaadi.com and Shopclues. In April, this app was banned in India but then they lifted the ban as it has become the biggest social platform for Indians in comparison to Facebook.
China has also played an important role in increasing the spending of TikTok. In May, the iOS users of China have spent $ 5.9 million on the in-app purchases which reflect the huge portion of $9 million. This hit to around 65% of the total spending of TikTok.
On the other hand, the iOS and Android users of the U.S spent around $2 million making 22% of the total revenue.
You can see that there is an increase in the number of users who install this app on their handsets to make cute TikTok videos. An interesting thing is that this app does not focuses on the strategy of in-app purchases but advertisers are attracted to this platform because of huge user engagement.
TikTok shared that they had around 500 million active users last summer. According to reports, they have spent around $94.7 million and this is definitely going to hit $100 million this month.