TikTok has seen sharp growth in active users by amassing a sizable global footprint in 2020 — nearly tripling in size since 2018. In 2021, we expect TikTok to not only achieve a coveted spot in the 1 Billion monthly active users club, but to sail straight past to 1.2 billion.
Other notable social members of this club include Facebook, Facebook Messenger, WhatsApp, YouTube, WeChat and Instagram.
As of Q3 2020, TikTok was the #2 non-gaming app by consumer spend — a testament to the breadth and depth of engagement for its user base. Many of the most used social media apps don’t break into the top consumer spend charts, as they primarily monetize from ad revenue. While TikTok monetizes through ads, it also allows users to transact in the app through sales of virtual gifts used for tipping streamers, where users can increase their chance of getting a shout-out out of the recognition they earned through tipping, creating a positive feedback loop which further encourages creativity and spending.
Part of TikTok’s success lies in the combination of user-generated content, short looping videos and robust video editing tools. TikTok represents a powerful opportunity for businesses to engage with a large global base of invested consumers.