TikTok ad revenue is expected to go up by 51.7 percent year over year in 2023

Renowned short video application TikTok made its debut almost 7 years ago, in September 2016. Since that time, the app has been going head-to-head with Meta-owned Instagram as it has entered the 1 billion-plus download category.

Due to the app’s global success, a number of advertising brands have started using it for their product promotions. At the time of the COVID-19 pandemic, social media platforms reached their all-time highs in terms of users. This is when TikTok started to gain not just users but the app eventually started to attract advertising brands.

Back in 2020, TikTok earned almost $1.41 billion in advertising revenue. A number of brands belonging to different sectors, including technology, cosmetics, clothing, and telecom utilities, began spending money on TikTok for their brand promotion. It was just a matter of time before, by 2021, the figures went from 1.41 billion dollars to 3.8 billion dollars, with clothing and accessories as the leading ad-spending sector, followed by retail and technology.

Even though the app got itself banned in a number of countries, including India, TikTok still managed to earn almost 10 billion dollars in terms of ad revenue. Despite being in a controversial spot, the platform was able to earn three times more in 2022. As compared to 2021, where clothing took the lead, last year technology and electronics became the top ad spend sector for TikTok. Shortly followed by clothing and telecom utilities.

As per the latest report released by WARC Media, the application is preparing itself to experience a 51.7 percent increase in revenue in the ongoing year, which means that in 2023, the figures are expected to reach somewhere around 15.2 billion dollars. In comparison to the performance observed last year, when TikTok managed to increase its ad revenue by 200 percent, the ongoing year is expected to increase its revenue by almost 51 percent.

WARC Media has also predicted that technology and accessories will become the leading sectors, followed by cosmetics and retail. Based on the prediction, it is expected that five of the top ad revenue sectors will spend somewhere near 8.5 billion dollars collectively on TikTok.

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