TikTok Sees $1 Billion Consumer Spend in Q1 2023

TikTok has become the first-ever app to surpass $1 billion in consumer spending in a single quarter. Among non-gaming apps, TikTok sets itself apart by seeing many one-time purchases, as opposed to repeating subscriptions.

Research from data.ai found that nearly 70% of in-app purchases amongst non-gaming apps comes from subscriptions, for example dating apps, streaming services, etc. TikTok bucks this trend by facilitating a significant amount of one-time purchases.

These one-time purchases are often related to TikTok coins, the in-app currency which users purchase in order to send gifts to their favourite streamers. 

Another example of significant consumer spend through the one-time purchase / al-a-carte format is dating app Hinge. Research found that after the introduction of Roses as a one-time premium offering in late 2020, the option now accounts for more than a third of Hinge’s revenue in the US on iOS.

data.ai identified that alongside the roll out of Roses, Hinge has also raised the prices of its subscription options. The combination of these two different options for users means “Hinge quickly adapted its monetisation strategy with a variety of preferences and price sensitivity. And as a result, the dating app found rapid growth”. 

Click here to read data.ai’s full report on mobile monetisation.