TikTok’s worldwide ad revenue is predicted to triple to over $11 billion (70 billion yuan) in 2022, according to Insider Intelligence, more than the $10.4 billion (66 billion yuan) for Snapchat and Twitter combined.
In 2022, Twitter and Snapchat are expected to generate $5.4 billion (36 billion yuan) and $5 billion (31 billion yuan) in ad revenue, respectively.
Why it matters
TikTok landed its billionth user in 2021, four years after its global launch, which is half the time of Facebook, YouTube or Instagram to reach the benchmark, and three years earlier than WhatsApp. Facebook believes TikTok is the primary reason for their continuous loss of users as TikTok is winning the “sweet spot” of social media users, Gen Z (18 to 25-year-olds), where Facebook is seeing its biggest declines.
“TikTok’s user base has exploded in the past couple of years, and the amount of time users spend on the app is extraordinary,” says Debra Aho Williamson, principal analyst at Insider Intelligence, which compiled the ad spend forecast.
Context
Nearly $6 billion (38 billion yuan) in ad revenue is expected to come from the United States this year, despite regulators’ previous concerns about user data privacy in the U.S. According to Sensor Tower, Douyin and its overseas version TikTok topped the global mobile app (non-game) downloading list in March 2022 with over 63 million downloads, a YoY increase of 9.1% from March last year. Douyin’s download volume accounted for 11.2%, while TikTok’s download volume in the US market accounted for 10.7%.
