TikTok makes money through advertising. It is estimated that ByteDance, its owner, made $51 billion in 2021 in revenues. TikTok instead generated $4.6 billion in advertising revenues, 3.3 billion downloads, and 1.2 billion monthly active users, in 2021. TikTok, therefore, is a multi-billion company, worth anywhere between $100 and-150 billion and among the most valuable social media platforms on earth.
TikTok Business Model Explained
It went to 1.2 billion active monthly users in a few years. A meteoric rise, that we have never seen before.
The company monetized this attention through an advertising platform, miming the advertising model of Instagram:
While TikTok is a relatively small player, in terms of revenues. It growth has been so quick, that we can imagine it becoming a key player (together with Google, and Facebook) in the digital advertising space.