Douyin and TikTok rake in $11.7 million in user spending in July

By Tony Xu
1 min read
Screenshot of TikTok’s official website. (Image Credit: TikTok)

Short video app Douyin and its overseas version TikTok grossed a total of $11.7 million through in-app sales of virtual coins in July, increasing by 290% year-over-year, according to mobile app intelligence firm Sensor Tower.

Why it matters: Strong growth in user spending shows the potential of virtual currencies on Douyin and TikTok to become an important revenue source.

  • However, it’s not going to displace their ad revenue any time soon, estimated at RMB 40 billion in 2019, according to a report from NetEase Tech.

Details: Virtual coins on Douyin and TikTok can be used to purchase gifts for livestreamers.

  • Users in China contributed approximately 70% of the total sales in July, spending close to $8.2 million via Apple’s App Store. This marks a 777% year-over-year increase in in-app purchases. Sales on third-party Android stores were not included.
  • Spending from TikTok users in the US accounted for 20% of the total user spending last month, increasing by 42% year-on-year to reach $2.3 million.
  • First-time installs of the app dropped 54% year-on-year but still reached 54 million globally. New users from China last month fell 17% year-on-year, whereas new users in the US grew 11% year-on-year.