TikTok Annual Profit and Income Forecast

TikTok’s user base more than doubled between 2019 and 2021, from 291.4 million to 655.9 million. As the fastest-growing social media platform, it is forecast to reach over 800 million monthly users worldwide. This number will land it in 3rd place among the Big Five social platforms. In terms of earnings, let’s look at TikTok annual profit and the social media app’s income forecast. 

How Much Money Does TikTok Make?

Advertising is a major component of TikTok’s revenue model. The platform generates most of its profits from TikTok ads, which are among the most successful across the social media universe. In fact, reports reveal that TikTok delivers the highest return on investment (ROI) for every ad dollar. 

For advertisers across a wide variety of market segments, TikTok is a serious contender in terms of digital marketing opportunities. And as more marketers pour their ad budgets into TikTok, the platform reaps higher profit margins annually. 

Here’s a closer look at TikTok annual revenue.

TikTok Revenue

TikTok’s bite-sized, mobile video format and AI-powered delivery of satisfying content make it a massive hit among social media consumers and advertisers. The app’s highly intuitive algorithm does not only consistently serve users with content that caters to their interests. It also gives marketers a robust tool to reach consumers most likely to generate conversions. 

The platform’s year-on-year overall revenue, according to the Business of Apps’ 2024 TikTok App Report, comes from:

1. Advertising
2. In-app purchases
3. Commerce 

TikTok gets most of its earnings from ads — representing approximately 80% of the app’s total annual revenues. The latest data reveal that the app is poised to hit 17.2 billion USD in 2024 — a 30.7% year-on-year increase. Here’s a breakdown of TikTok’s annual ad revenue from 2021 to 2025:

• 2021: 3.9 billion USD
• 2022: 9.9 billion USD
• 2023: 13.2 billion USD
• 2024: 17.2 billion USD
• 2025: 22 billion USD

Based on these numbers, TikTok has an average annual growth rate of 61.7%.

The abovementioned Business of Apps report reveals the platform’s year-on-year overall earnings from 2019 to 2023:

• 2019: 0.35 billion USD
• 2020: 2.6 billion USD
• 2021: 4.8 billion USD
• 2022: 9.6 billion USD
• 2023: 16.1 billion USD

Is TikTok Profitable? 

The numbers from separate reports listed above show a drop in 2022’s overall earnings versus the ad revenue for the same year. However, between 2021 and 2022, the platform still saw a 100% year-on-year increase in overall revenue. 

In 2023, TikTok’s ad revenue of 13.2.1 billion USD represented a 67% year-on-year increase. Given the forecasted 17.2 billion USD earnings from ads for 2024, the app’s profits will only increase by 30.7%. 

This represents a downward trend compared to the previous year’s percent increase. The lower ad spend and resulting lower profits from ads are likely the direct result of TikTok’s potential U.S. ban. 

Nevertheless, TikTok’s past and present trajectories indicate that the app will continue to be profitable. The platform’s projected 2024 profits from ads will be a 341% increase from its ad revenue in 2021. This is a massive growth in profit margins within only three years! Currently, the app is worth 84 billion USD.

TikTok’s revenue model relies heavily on third-party advertising, but it’s also worth noting that the app has other revenue streams. 

For example, TikTok earns a small profit when users purchase TikTok Coins, which they use to buy virtual Gifts. When content creators earn Diamonds from Gifts, the app takes 50%- 70% of the Diamonds’ cash value when they make a withdrawal. 

The platform also takes less than 5% of each TikTok Shop transaction. 

TikTok Growth Forecast

What does TikTok’s growth look like in the next few years? Here are a few projections from industry analysts:

• The social media network’s number of users worldwide is expected to increase by 6.7% by the end of 2024. In comparison, Facebook’s user growth rate is forecast at only 0.7%, and Instagram’s is at 5.7%.
• Experts’ 2025 forecast sees a lower 4.2% increase in user growth. 
• TikTok’s growth will continue to decline by 2026, with an estimated 2.9% increase. 
• From 2027 to 2029, the network’s global user expansion will likely be between 2.2% and 2.4% per year. 

This downward trend is expected as TikTok reaches its saturation point in terms of number of monthly users. Currently, 20% of all people online already use the video-sharing platform. 

TikTok’s ad revenue will also follow the same declining trajectory. Its earnings from ads will continue to rise year after year, but yearly growth rates will become smaller. 

How To Tap Into TikTok’s Earning Opportunities 

TikTok is a key network that anyone looking to build an online presence should tap into. As one of the world’s most popular social media platforms, the app offers incredible opportunities for growth. 

Numerous popular creators and music artists got their start on the video-sharing app. And TikTok’s increasing ad revenues yearly demonstrate consistent brand trust in the app’s marketing potential. 

TikTok’s uncanny ability to perfectly match users with content they enjoy is at the core of the platform’s financial success. It also fuels higher conversions from TikTok ads and earnings from various monetization opportunities for creators. If you want to be among the countless users tapping into TikTok annual profit opportunities, just start creating TikTok videos!

And if you want to maximize your earnings as a content creator on TikTok, sign up for a High Social plan. Instantly double your audience-targeting power with High Social’s advanced, proprietary AI technology. 

Build a solid and engaged follower base as effectively as TikTok grows its monthly active users. Start growing your TikTok today!

TikTok Financial Statements: Frequently Asked Questions

Here are a few more FAQ to sum up TikTok’s value in numbers. 

TikTok 101