TikTok is certainly the social network of the moment. The platform could hit the billion-users mark by 2021, according to a report published by App Annie. It represents a huge business opportunity that could materialize while the world is being hit by an unprecedented economic crisis. However, these predictions still have to be taken with a grain of salt since TikTok is still at risk of being banned on American soil.
TikTok's success doesn't look likely to subside anytime soon, according to App Annie . The website that analyzes the progress of top applications forecasts that the video sharing app will clock over a billion active users by 2021. It predicts a total of over 1.2 billion active users every month on the platform. "TikTok has seen sharp growth in active users by amassing a sizable global footprint in 2020 -- nearly tripling in size since 2018. In 2021, we expect TikTok to not only achieve a coveted spot in the 1 Billion monthly active users club, but to sail straight past to 1.2 billion," reads the App Annie press release.
Huge business opportunities
TikTok, which was created in 2016, could eventually enter the 1 billion club alongside current members such as Facebook, Facebook Messenger, WhatsApp, Instagram, YouTube and WeChat.
Entering this club would have huge economic implications, since brands will increasingly invest in the platform, focusing on digital formats in these times of economic crisis. The App Annie report also shows that this application experienced the second-highest consumer spending among non-gaming applications during the third quarter of this year, proving its huge business potential. While TikTok relies on ads to monetize its application, the platform also allows its users to generate revenues thanks to virtual gifts used like tips.
However, the China-owned application is still risking a national ban from the Trump administration although it got a reprieve from another delay in the enforcement of the ban last week. During the past few months, the social network has been accused of posing a security threat by the current president. While a technology advisor to President-elect Joe Biden said "it's too early" to know the Biden administration's TikTok policy," the potential deal with Oracle and Walmart to buy TikTok in the US may still be on the table.