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Data analysts at Betting Sites have done a deep dive on Statista into different social medias and their revenues and growth percentages to find out who is leading the pack.
Over the next four years, TikTok, is projected to double its ad revenue by $7.4 billion and take over 37% of the ad revenue market share.
Highlights from the data:
- TikTok fastest growing social media company by ad rev 2022 (+26% YoY)
- TikTok market share of ad rev to overtake Meta & YT to be market leader by 2027 with 37% share
- TikTok ad rev to double by 2027 ($13.8bn)
The Chinese ByteDance-owned video sharing app, has become an integral digital and popular platform for brands, especially in the pursuit of reaching younger audiences.
TikTok was fastest growing social media company by ad revenue In 2022
In 2021, TikTok was the most downloaded mobile app in the world.
TikTok’s ad revenue has grown 26% in 2022, more than any other platform in the US.
The social media platform has been an immensely profitable business for advertisers, which has contributed to its overall growth. While Facebook (18%) and Twitter (22%) share a part of market, TikTok is the fastest-growing media brand worldwide. In 2022, the growth rate of the brand increased 215% globally.
Tiktok to overtake Meta & YouTube in Social Media ad revenue market share by 2027
By 2027, TikTok’s ad revenue share is expected to double, increasing from 7% to 14% while Youtube and Meta are expected to lose market share during that timeframe. On the other hand, TikTok’s Chinese counterpart, Douyin, is expected to increase as well from 15% to 23%.
Combined, TikTok and Douyin will command 37% of the marketing ad spend.
Tik Tok ad revenue to more than double by 2026 to $13.8bn
This year TikTok is projected to bring in $6.4 billion in ad revenue. By 2026, the ad revenue for TikTok is set to double, reaching $13.75 billion.
The ad revenue has steadily increased and will continue do to so over the next three years. By 2027, TikTok is projected to gain an average of $2 billion in ad revenue each year.
According to WARC Media’s latest ad spend forecast, TikTok is set to reach £15.2 billion (around $18.5 billion) in advertising revenue in 2023, up 51.7% and a near $2bn upgrade from last year’s forecast.
All product categories to increase TikTok advertising investment
TikTok has been a major beneficiary of marketers choosing to rebalance budgets in light of media fragmentation. WARC Media forecasts all categories will increase ad investment on TikTok in 2023, including sectors that are forecast to see an overall ad spend decrease, such as automotive and soft drinks.
While each of the top five spending categories - technology & electronics ($2 billion), toiletries & cosmetics ($1.8 billion), retail ($1.7 billion), clothing & accessories ($1.7 billion) and telecoms & utilities ($1.5 billion) - are forecast to see their combined annual spend on TikTok surpass $8.5 billion in 2023, in other categories the growth will be more modest.
Technology & Electronics sector to boost advertising spend by 14.3% to $2.0bn on TikTok in 2023
WARC Media’s latest Global Ad Trends report, Media Models in Flux, found that advertising spend in the technology and electronics category is shifting toward digital ad formats in channels like video and audio. As one of the market’s fastest growing categories from an ad investment perspective, ad investment on TikTok is forecast to increase by 14.3% this year, to a combined investment of $2.0bn.
Alex Brownsell, Head of Content, WARC Media, says: “TikTok plays a growing role in culture around the globe. Its potential ad reach stands at a reported 1.05 billion, including 409.1 million users aged 18 to 24. In 2022 it was the most downloaded app in the world for a third year running according to data from Sensor Tower. And its full-screen, vertical video format has inspired copycat products such as YouTube Shorts and Instagram Reels.”
