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.