TikTok Ad Revenue (2021–2025)
As one of the most popular social media platforms not only in the US but in the world, there’s no question TikTok is one key social network businesses need to focus on to grow their brand.
In fact, many brands are already very active on TikTok, as they try and amplify their digital presence to reach more users. This is evidenced by recent statistics on TikTok’s ad revenue, which has been growing year after year.
How much does TikTok make a year from ads?
According to the latest data, TikTok’s ad revenues are set to hit $13.2 billion in 2023, a 33% increase from the previous year. As it is, TikTok is the social network consumers spend the most time on, and the fastest-growing social media platform.
Impressive as this may be, the expected growth this year actually marks a significant slowdown from the previous year. In 2022, TikTok’s annual revenue from ads registered at $9.9 billion, a whopping 155% yearly increase. In other words, TikTok’s annual revenue in 2022 was more than 2.5 times that of the previous year.
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This is a downward revision from an earlier forecast, in which experts had predicted that TikTok’s ad revenues would hit $18 billion in 2023. This adjustment comes after reports of a potential TikTok ban in the United States and similar efforts in other countries.
Nevertheless, TikTok’s boom in recent years cannot be denied. In 2021, TikTok’s ad revenue was $3.88 billion—less than a third of its expected revenue in 2023.
Analysts credit the increase in TikTok’s ad revenues to its growing popularity, especially among teens, and the social network’s focus on improving the in-app shopping and social commerce experience for its users.
The ByteDance-owned network is expected to continue growing its ad revenues next year—albeit at a slower pace. Analysts predict that TikTok’s ad revenue will increase by 30.7% in 2024 to hit $17.2 billion. By 2025, this will hit $22 billion, a 28% annual increase.
According to these numbers, TikTok’s annual revenue is forecast to grow more than five-fold from 2021 to 2025, at an average annual growth rate of 61.7%. The biggest increase during this period was in 2021, while the smallest is set to come in 2025.