When TikTok first launched in the U.S. in 2018, no one could have foreseen just how successful the ByteDance app would have been. But a year on and the numbers are in: TikTok users in the U.S. have spent $23.1 million on the app, so far.
The app has already been downloaded by around 100 million users (1 billion worldwide) and the U.S. market is responsible for 24% of its in-app purchase revenues, excluding any third-party apps.
According to Apptopia, monthly downloads went flat following the initial hype surrounding the app, but picked back up in May 2019 when they rose 103%.
The app attracts mostly younger users and an estimated 50% of its U.S. active users are under the age of 20.
This makes it a popular destination for many brand marketers trying to reach Gen Z.
Early adopters include brands like fashion brand Guess and restaurant chain Chipotle which launched a sponsored “Hashtag Challenge” on TikTok. There have also been reports of food delivery app Grubhub testing video ads during early 2019.
Kory Marchisotto, CMO of American cosmetics brand e.l.f. told eMarketer:
“I think [TikTok] is bringing something very different. Instagram has become highly polished, it’s still the coffee table book, it’s very curated. On TikTok, everybody’s out there to have fun and express themselves in unique ways.”
In an effort to diversify its ad offering further, ByteDance developers revealed that the company was working on an audience network to allow advertisers to reach customers more effectively.