Since the beginning of 2023, TikTok has earned $ 205 million more from direct sales in the application than Facebook, Instagram (banned in the Russian Federation, owned by Meta Corporation, which is recognized as extremist in the Russian Federation), Twitter and Snapchat.
According to Report, this is reported by Forbes magazine.
The publication notes that the monetization model of the listed, as well as other similar platforms, has changed significantly after the introduction by Apple in 2021 of the ability to limit the amount of information collected by the listed networks on their devices. As a result, the effectiveness of targeted advertising has declined, revenue from it has fallen, and these platforms have had to look for other sources of profit. The way out of the situation was to increase in-app sales, primarily of exclusive services, premium statuses and additional features for users.
Forbes emphasizes that the transition to direct sales as a source of income is at an early stage, while they are still several times inferior in volume to advertising revenue. Meta, for example, is just getting started with such a tool, experimenting with paid verification, Twitter also only turned to this area last fall. TikTok has been developing this direction for about two years, which explains its leadership. The monetization models used by TikTok could be the mainstream for the industry in the coming years, Forbes believes.
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