TikTok’s ad revenue will surpass Twitter and Snapchat combined
TikTok’s 2022 ad revenue is forecasted at $11B, more than Twitter and Snap combined.
TikTok is absolutely crushing it when it comes to ad revenue. According to Reuters, TikTok’s advertisement revenue expects to triple in 2022 to more than $11 billion.
To compare apples to apples, Twitter expects to generate $5.58 billion in advertising revenue by 2022, and Snapchat will generate $4.86 billion. When you add those two figures, that doesn’t even come close to what TikTok expects to make in 2022.
So how is TikTok generating so much more revenue than Twitter and Snapchat combined? Well, the answer is pretty simple. It all boils down to active users.
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Currently, TikTok has more than one billion active users on its platforms. On the other hand, Twitter only has 206 million active users, while Snapchat has 293 million daily active users worldwide.
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The more users you have on a platform, the more ads you can show. This is because more ads equal more revenue, which seems to be the case here with TikTok.
“TikTok’s user base has exploded in the past couple of years, and the amount of time users spend on the app is extraordinary,” said Debra Aho Williamson, an analyst at Insider Intelligence.
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If all goes to plan, TikTok’s ad revenue could reach $23.58 billion by 2024, which puts it within striking distance of YouTube’s $23.65 billion.
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