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.

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How much does TikTok make a year from ads?

According to the latest data, TikTok’s ad revenues are set to hit $18.04 billion in 2023, a 55% 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 in TikTok’s ad revenues this year actually marks a significant slowdown from the previous year. In 2022, TikTok’s annual revenue from ads registered at $11.04 billion, a whopping 200% yearly increase. In other words, TikTok’s annual revenue in 2022 was three times higher than in 2021.

By experts’ estimates, not only was more than the combined total of competitors Twitter and Snapchat, half of this revenue also originated from the United States.

To really understand the boom TikTok has been experiencing, we only need to go back a few years. In 2019, TikTok’s ad revenue was $340 million—a fraction of what it is today. It multiplied by more than four times, to $1.41 billion in 2020, before surging another 175%, to $3.88 billion in 2021. 

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 $23.58 billion.

According to these numbers, TikTok’s annual revenue is forecast to grow 70-fold between 2019 and 2024, rising from $340 million to $23.58 billion, at an average annual growth rate of 155%. The biggest increase during this period was in 2020, while the smallest is set to come in 2024.

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