TikTok becomes the first app to reach $10 billion in app spending in 2023

Bloomberg posted an analysis of app spending for 2023, revealing an 11% rise in revenue. Demand for video platforms drove the increase, while games were down 2% on a yearly basis. The data reveals TikTok surpassed $10 billion in in app spending, making it the first app to reach this threshold. The milestone was achieved through a system, allowing users to tip their favorite creators and live streamers.

Market researchers said the ByteDance owned social media “unlocked the secret to monetization on mobile”. Spending in apps, rather than games, grew in 2023, as users paid more for streaming, user generated content and dating apps. However, the biggest revenue driver on mobile remained advertising – two thirds of mobile sales were for mobile ads, reaching $362 billion, which was 8% more than in 2022.

Consumers remained for longer on their smartphones, the analysis also revealed. Indonesia ranked highest among countries, with an average of over 6 hours per person daily. The average in the top 10 markets hit 5 hours of daily app usage, and spending increased 3% as well. The most downloaded apps were Shein and Temu, the latter being the most downloaded app across 125 markets.

Elsewhere, travel and ticketing sectors saw a rebound in popularity and spending. According to the data, generative AI apps surpassed $10 billion in monthly consumer spending by late 2023. Source.