Worldwide revenues will triple in 2022
April 11, 2022 (New York, NY) – TikTok’s worldwide ad revenues will triple this year and surpass that of two competitors combined, according to Insider Intelligence’s inaugural forecast on TikTok ad revenues. The Chinese-owned social video app will have more than $11 billion in ad revenues in 2022, with more than half coming from the US.
WORLDWIDE
TikTok’s worldwide ad business grew 175.0% in 2021 to $3.88 billion. Growth will soar to 200.0% this year, propelling revenues to $11.64 billion. That means its ad business will be greater than Twitter’s ($5.58 billion) and Snapchat’s ($4.86 billion) combined.
TikTok is also nipping at YouTube’s heels. By 2024, the end of the forecast period, TikTok’s ad revenues will swell to $23.58 billion, essentially equivalent to that of YouTube ($23.65 billion). By then, each company’s share of the worldwide digital ad market will be 3.1%.
“TikTok’s user base has exploded in the past couple of years, and the amount of time users spend on the app is extraordinary,” said Insider Intelligence principal analyst Debra Aho Williamson. “It has moved well beyond its roots as a lip-syncing and dancing app; it creates trends and fosters deep connections with creators that keep users engaged, video after video. Advertisers want to reach a passionate, dedicated audience, and TikTok can deliver that. Another factor that will drive growth in ad spending is TikTok’s unique take on social commerce. It pairs marketers with creators to help content go viral, and that can drive enormous demand for products that advertisers want to promote.”
Despite explosive growth in revenues, TikTok still maintains a small position in the worldwide digital ad market. Its share will grow to 1.9% this year from 0.7% in 2021. For context, Google leads with 29.0%, followed by Meta with 21.4%.
US
More than half (51.2%) of TikTok’s revenues will come from the US this year. It will generate $5.96 billion, up 184.4% year over year (YoY). That gives the social network a 2.4% share of the US digital ad market. Importantly, the Chinese app will surpass Twitter and Snapchat combined within the US market, as well.
Starting next year, growth will slow to double digits, but TikTok’s US ad revenues will exceed $11 billion by 2024, raising its share of the market to 3.5%. Meanwhile, 46.7% of TikTok’s global ad revenues will come from the US.
UK
TikTok is expanding internationally at a rapid pace. For the first time, Insider Intelligence is also breaking out TikTok’s UK ad revenues, which will make up 8.9% of the company’s global ad revenues by the end of this year. The business is growing rapidly in the UK, despite it being a much smaller market. This year, TikTok’s UK ad revenues will jump 190.2% to £753.32 million ($1.04 billion). That will give the company a 2.9% share of the UK digital ad market.
As in the US and worldwide, TikTok’s UK ad business will surpass that of Twitter and Snap combined this year.
By 2024, TikTok’s UK ad revenues will nearly double to £1.44 billion ($1.98 billion), pushing its digital ad market share to 4.7%.
Methodology
Forecasts and estimates from Insider Intelligence are based on an analysis of quantitative and qualitative data from research firms, government agencies, media firms, and public companies, as well as from interviews with top executives at publishers, ad buyers, and agencies. Data is weighted based on methodology and soundness. Each eMarketer forecast fits within the larger matrix of all its forecasts, with the same assumptions and general framework used to project figures in a variety of areas. Regular re-evaluation of available data means the forecasts reflect the latest business developments, technology trends, and economic changes.
