TikTok Ad Revenue – How High Is It?
When TikTok first hit the scene, almost everybody laughed it off as Vine 2.0 and thought it would be long gone. By chance or design, TikTok, which turns seven this year, is one of the most successful social media networks.
At first seen as a social media only for teenagers (infamous for their lack of spending power), Tiktok failed to attract big companies to advertise on the platform. Now, TikTok is the most popular social media platform. Its app has been the most downloaded app for three consecutive years, missing out on the top spot only to WhatsApp in 2019.
What does that mean for advertisers? Well, they’ve increasingly joined the short-video-sharing craze. In 2020, the estimated ad revenue was $2 billion, and it doubled in size the following year. According to projections, TikTok ad revenue will reach $13.79 billion in 2026.
TikTok Ad Revenue Statistics
TikTok is an exceptional platform to increase your brand awareness in front of a new wave of customers. It started off as a platform where kids would film themselves doing viral dances. While it still kept its core values, TikTok has moved on from being a silly pastime into a proper business for some.
For example, famous TikToker Charli D’Amelio reportedly earned about $17.5 million in 2022 alone.
TikTok’s potential has not gone unnoticed, with brands willing to invest more and more money into promoting their brand on the platform. In 2022, businesses spent $5.04 billion on TikTok ads. In 2024, projections show that the number should be about $8.2 billion.
It’s worth noting that, while these may be impressive numbers, it’s still nowhere close to the revenue Facebook generates, which earned $135.94 billion in 2022. Facebook’s attraction is dwindling as TikTok dominates video ads and gradually supplants Meta.
TikTok Ad Revenue Share – Video Ads
While Meta still reigns supreme in ad revenue, TikTok, a video-based network, is doing better than its rival in video ads. Despite Facebook prioritizing video ads in recent years, experts estimate that TikTok will continue to grow and overtake both Meta and YouTube in the coming years.
As of 2022, TikTok and TikTok Douyin (the same app in China) had only 7% and 15% of global video ad revenue share. Meta and YouTube stood at 16% and 15%, respectively.
This trend is soon to change. In 2027, estimates show Meta and YouTube will drop by 4% and 3%. This leaves space for TikTok and TikTok Douyin to grow to a revenue share of 14% and 23%, combining for a massive 37%. The percentage, according to Omdia, will equate to about $120 billion.
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While TikTok has its own advertising system, a large number of companies decide to reach out to influencers directly and reach a broader audience that way. Like with Instagram influencers, the TikTok influencer market is on the rise, and a collaboration between a business and an influencer is one of the dominating trends in social media marketing.
If we look at brands that benefited most from influencers mentioning them on TikTok in 2021, we’ll see that Netflix is on top of the charts. The following list shows brands and the number of influencers that mentioned them in their videos:
- Netflix: 4,560
- McDonald’s: 3,570
- FashionNova: 2,640
- Starbucks: 2,490
- Adult Swim: 2,470
- Target: 2,360
- Disney: 2,100
- Barstool Sports: 1,960
- Dunkin’ Donuts: 1,890
- CBS News: 1,870
If you want to go down this route, you can decide whether you want to go big and collaborate with one of the biggest names to reach the broadest audience. Alternatively, you can pay less for a smaller creator that is influential in your niche. Estimates show that you can spend anywhere between $5 and $2,000+ per single post:
|Influencer Tier||Number of Followers||Price per Post|
|Mid-tier influencer||50,000–500,000 followers||$100–$1,000|
|Mega-influencer||Over 1,000,000 followers||$2,000+|
If you need help finding and engaging with influencers, InfluencerDB might be the perfect tool for you.
TikTok has been on a dramatic rise since it first launched in 2017. The younger generation latched onto it in no time, while businesses were (and still are) ginger about developing their presence on the platform.
TikTok’s ad revenue is somewhat lagging behind its user numbers, but the projections show the revenue will keep going up. This might be the perfect time to jump on board, with the platform offering plenty of space for smaller brands to reach massive audiences.
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