Users spend an average of 95 minutes on TikTok and open the app eight times daily. Considering the audience’s love for TikTok, brands actively invest in advertisements on the platform.
Due to this peaking interest, TikTok is forecasted to generate an advertising revenue of $17.2 billion in 2024.
In the following article, I have provided details about TikTok ad revenue and the factors that have contributed to its increase.
TikTok Ad Revenue 2024: Top Picks
- The TikTok ad revenue is estimated to reach $17.2 billion in 2024, which would be a YoY increase of 30.7%.
- The ad revenue is further expected to reach $22 billion by 2025.
- TikTok’s advertising revenue in the United States is estimated to reach $11.01 billion in 2024.
- TikTok and Douyin’s advertising revenue share is expected to increase from 22% in 2022 to 37% by 2027.
How Much Does TikTok Make In A Year From Advertisements?
In 2023, TikTok generated $13.2 billion in advertising revenue worldwide.
The TikTok ad revenue is estimated to reach $17.2 billion in 2024. That will be a 30.7% increase in TikTok’s ad revenue compared to the previous year.
However, this is a slowdown in TikTok’s ad revenue growth rate.
In 2022, TikTok generated an ad revenue of $9.9 billion, which was a 155% increase YoY.
This slowdown is primarily the result of the reports predicting the potential ban of TikTok in the United States, Japan, the United Kingdom, and more.
According to the forecasts made earlier, TikTok’s ad revenue was estimated to reach $23.6 billion in 2024.
However, according to the current forecasts, TikTok’s ad revenue is predicted to reach $22 billion by 2025, with an annual increase of 28%.
The following table displays TikTok’s ad revenue over the years.
| Year | Ad revenue generated by TikTok | Increase in Ad revenue |
| 2025* | $22.0 billion | 28% |
| 2024* | $17.2 billion | 30.7% |
| 2023 | $13.2 billion | 33.4% |
| 2022 | $9.9 billion | 153.84% |
| 2021 | $3.9 billion | – |
Source: Oberlo, Insider Intelligence.
TikTok Ad Revenue in the United States
According to an Insider Intelligence report, TikTok is estimated to generate $11.01 billion in advertising revenue in 2024 in the United States.
That will be an increase of 25.8% in the ads revenue compared to the previous year.
Comparatively, TikTok generated $5.96 billion in advertising revenue in 2022. The ad revenue in 2022 increased by 184.4% compared to the previous year.
The following table displays TikTok’s Net Ad revenue in the United States over the years:
| Year | TikTok Net Ad Revenue in the US | Percentage Increase in the Ad Revenue |
| 2024* | $11.01 billion | 25.8% |
| 2023* | $8.75 billion | 46.8% |
| 2022 | $5.96 billion | 184.4% |
| 2021 | $2.10 billion | 170.0% |
Source: Insider Intelligence.
TikTok Ad Spending will Continue to Grow in 2024
Brands are expected to spend 10% to 15% more on TikTok in 2024.
TikTok is one of the fastest-growing apps, with over 1.7 billion users. As a result, more marketers are looking forward to reaching their target audience through short-form videos on the platform.
Source: Digiday.
By the end of 2027, TikTok ads will generate higher revenue than YouTube and Meta combined.
Brands are turning towards TikTok for advertising and are slowly turning away from Meta and YouTube.
TikTok’s online advertising revenue share is expected to increase from 22% to 37% in the year 2027. This percentage includes both TikTok’s revenue and Douyins’s (Sister app of TikTok used in China) Revenue.
Meanwhile, the combined revenue share of Meta and YouTube was 31% in 2022 and is expected to decrease to 24% in 2027.
The following table displays the revenue share of different advertising platforms currently and in the future:
| Advertising platform | Revenue share as of 2022 | Revenue share as of 2027 |
| Meta | 16% | 12% |
| YouTube | 15% | 12% |
| TikTok | 7% | 14% |
| TikTok (Douyin) | 15% | 23% |
| Others | 47% | 39% |
One of the biggest reasons for such a huge diversion of brands towards TikTok is the platform’s strategy to boost its advertising business. TikTok encourages brands to advertise their products as simple advertisements and by creating meaningful content. This strategy helps to increase brand reach as the users do not skip or scroll entertaining advertisements.
Further, the hashtag “TikTok Made Me Buy It’’ gained popularity in the past months, encouraging consumers to buy the products they see on TikTok.
TikTok Beats Snapchat as the Favorite App of Teens in the US
Snapchat was known as the most popular app among GenZs. However, TikTok has now surpassed Snapchat’s popularity and has become the most popular app for teens.
The number of teens using TikTok will surpass 17.4 million teen Snapchat users and reach 17.5 million in 2024.
The following table displays the number of teens that use different social media networks in the United States
| Year | Snapchat | TikTok | |||
| 2025* | 17.9 million | 14.7 million | 17.9 million | 8.0 million | 5.2 million |
| 2024* | 17.5 million | 14.7 million | 17.5 million | 8.2 million | 5.2 million |
| 2023 | 17.3 million | 14.6 million | 17.1 million | 8.4 million | 5.3 million |
| 2022 | 17.2 million | 14.5 million | 16.4 million | 8.7 million | 5.3 million |
| 2021 | 17.0 million | 14.4 million | 15.4 million | 9.0 million | 5.4 million |
| 2020 | 16.6 million | 14.3 million | 13.0 million | 9.5 million | 5.4 million |
Source: Insider Intelligence.
Why do Brands prefer TikTok for advertising over other social media platforms?
92% of global users take action after watching a TikTok video. Meanwhile, 33% of the users reported purchasing a product after coming across it on TikTok.
TikTok users trust the experience of the TikToker creators more than the celebrities. Hence, most brands prefer to advertise their products on TikTok with the help of influencers that suit the brand or product value.
Conclusion: TikTok’s Ad Revenue will reach $22 billion by 2025
With more than 1 billion active global users, TikTok has become one of the most popular social media apps. These increasing numbers have caught the eye of the brands, which has led to an increase in the advertising revenue of the platform.
Today, TikTok is widespread for in-app shopping and social commerce, especially among teens. As a result, TikTok’s ad revenue is set to cross $22 billion by the end of 2025.
Here are some related reads you can check out.
