TikTok earns more from in-app purchases than other social media combined

TikTok would earn more from in-app purchases than all other social media combined. Analyst firm Apptopia claims this based on its own figures. TikTok users spent more than $100 million per month on the app.

That is much more than other social media, according to the figures from Apptopia. Where TikTok is above 100 million dollars per month, Snapchat, for example, is around 3 million per month. Facebook is around $4 or $5 million per month and Instagram brings in less than $1 million per month for Meta. Twitter was also well below a million dollars a month at the end of last year.

The revenue from in-app purchases is a possible new revenue model for social media, now that the revenue from advertising, especially on iOS, has declined over the past year. That’s because of the pop-up asking permission for tracking. As a result, the apps can sell less targeted ads and they are therefore worth less to advertisers.

Revenue comes from subscriptions and one-time expenses such as support for favorite creators. TikTok makes its money through in-app purchases with donations to user creators, just like Instagram. Snapchat and Twitter have subscriptions.