Since its beginning TikTok has invested in in-app purchases of coins, and this decision has proven to be the best way. In the previous year, the platform earned $1.5 billion in revenue from its app.
Apple’s implementation of App Tracking Transparency has had a major impact on the revenue streams of major social networks like Facebook, TikTok, Snap, and Instagram. These platforms are now constrained in their ability to utilize data for ad targeting and are adopting alternative monetization methods, such as direct user payments.
While paywalls are not yet in place, these platforms now offer various products and services that users can purchase within the app. Apple and Google take a cut of these in-app purchases, which has proven to be profitable. Since the implementation of App Tracking Transparency, the combined quarterly revenue from in-app purchases has increased by 91%.
Snapchat and Twitter have recently launched their premium programs known as Snapchat+ and Twitter Blue, respectively. These subscription services offer exclusive features and premium access to their platforms for a yearly fee of $40 and $115, respectively. While Snapchat and Twitter are offering premium services, Facebook and Instagram have taken a different approach by allowing users to pay for followers and fans to support their preferred creators or increase post visibility.
The trend towards premium programs seems to be on the rise, and this shift can be attributed to the increasing demand for personalized and unique experiences by users. While Snapchat+ and Twitter Blue provide an exclusive experience for users, it remains to be seen if other social media platforms will follow suit and introduce their premium programs.
According to Adam Blacker, a vice president at mobile metrics company Apptopia, TikTok’s app revenue has been on the rise for the past seven quarters. In 2023, TikTok generated an astonishing $205 million more in in-app purchase revenue than Facebook, Instagram, Snapchat, and Twitter combined. The massive growth in TikTok’s revenue can be attributed to the platform’s increasing popularity among users and the availability of features that resonate with their preferences.
The increasing demand for personalized experiences and exclusive content is a clear indication of the changing dynamics of social media platforms. As more platforms look to cater to their users’ needs and preferences, the introduction of premium programs may become the norm in the near future.
Bold Creators Club can help you reach your goals
To have a successful Instagram account, you need to put in the time and effort. You can’t just set up your account and expect people to start clicking on your links. You need an engaged audience that is interested in your brand. This is why running Instagram ads is still a good idea – it will help you build up a following and figure out what engages your target customers best.
Dealing with social media influencers is not always easy. Actually, most of the time, companies and influencers can’t communicate clearly, as there is a lack of a cultural, linguistic, and social bridge that connects both.
When it comes to Latin influencers, this communication barrier is even bigger. Not only because a lot of people in countries like Brazil or Colombia don’t English, but also because these countries are highly multicultural, with cities with completely different styles, slang, and social and cultural movements within the country.
In the case of Brazil, this aspect is so strong that there are even completely different cultures within the same city, in big metropolises like São Paulo or Rio de Janeiro.
It is really hard to keep up with the constant changes in pop culture and in the internet world, so contacting an agency whose job is to always be updated about what the influencers are doing, how is the stability in the country, and more important information for your company, is the best strategy.