In 2021, TikTok quintupled its turnover in Europe, reaching revenues of 990 million, an increase of 447%. Facts, numbers and comments
TikTok recorded nearly six-fold growth in its European turnover in 2021.
This was reported by the Financial Times based on the financial statements filed by the British TikTok Information Technology Limited, controlled by the Chinese company ByteDance, based in Beijing. Yet the loss also grew by a third ($ 896 million) as the social media platform strengthened its offering to advertisers and increased staff spending by hiring thousands more employees around the world.
The growth of the popular short video app is also certified by the new report released last week by Sensor Tower. The report shows that TikTok is becoming the highest-grossing app in the world even if the general market is experiencing a slight decline. Consumers reduced mobile app spend in Q3 2022 by about 5%, but the social video app TikTok just delivered another record-breaking quarter on this front. For the fourth consecutive quarter, TikTok continued its series of apps that generated the most revenue in a quarter.
All the details.
THE GROWTH OF TURNOVER IN EUROPE
Specifically, TIkTok reported revenue of more than $ 990 million for the calendar year, compared to $ 172 million the previous year, according to company documents reported by the Ft .
Growth was driven by the burgeoning short video app user base, estimated in the billions, aided by increased ad spend and improved ad targeting for short video platform users. The deposit refers to TikTok's operations for users in Europe, including the UK. The revenue was largely generated in the EU, which was $ 532 million, and the UK, which was $ 279 million. The previous year's figures were $ 114 million and $ 52 million respectively.
BUT ALSO COSTS
Sales and marketing expenses increased nearly 90% to $ 666 million, while administrative expenses grew nearly 30% to $ 212 million.
HOW IS THE ADVERTISING BUSINESS GOING
As the British newspaper points out, advertising is a major revenue engine for TikTok as well, as well as for American social media rival Meta and Twitter, and accounts for more than $ 802 million in its annual revenue in Europe, a fivefold increase. compared to the previous year. The company, which officially launched ads on the platform in 2020, said it had expanded its sales and account teams to provide "sufficient support for advertisers."
WHAT EMERGES FROM THE SENSOR TOWER REPORT
Finally, this growth in turnover in Europe is combined with the general one.
In the report published by Sensor Tower, TikTok is again the highest-grossing app in the world even though the overall market is experiencing a slight decline. However, as Techcrunch points out, the report combines TikTok's revenue with its Chinese version, known as Douyin, so technically it's the revenue generated by the two apps that offer the same short-lived vertical video feature set, not one.
TikTok's global app along with Douyin on iOS together maintained the position as the highest-grossing non-gaming apps on the App Store and Google Play, with approximately $ 914.4 million in consumer spend in the quarter. On the App Store, TikTok was the highest grossing non-gaming app. 1, while it was n. 2 on Google Play, behind Google's storage subscription service, Google One, which generated just over $ 330 million in the quarter.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/come-sprinta-tiktok-in-europa/ on Tue, 04 Oct 2022 13:19:12 +0000.