TikTok by the Numbers: Stats and Facts for Digital Advertisers

Despite continued privacy and cybersecurity concerns from regulators within the US and beyond, the TikTok era of social advertising marches on. Moving way beyond its roots as a forum for lip-syncing and dancing teens, the short-form video app has blown up the model of what a social network can be, and is increasingly a must-buy for a growing number of advertisers. 

To excel on this channel, brands must embrace creator-led, user-generated, unfiltered content to tell their story. And above all, they must be authentic. Indeed, nailing the creative in a way that is real and raw should be priority number one for advertisers on TikTok.

Powered by a dynamic algorithm that quickly gauges individual user preferences and then curates a highly personalized “For You” page (FYP), TikTok doesn’t have its users tell the platform what they want to see—rather, it tells them. And the internet, and advertisers, seemingly can’t get enough. The app is continually developing and implementing ad capabilities and features, and there is already much for media buyers to get excited about, particularly since it offers a complete in-app experience where users can shop directly through LIVEs, in-feed videos, or links on brands’ or creators’ profiles and check out without ever having to leave the TikTok app.

Of course, it’s not a channel without its share of troubles and controversies. Over four years after the Trump administration threatened to ban the app if its Chinese owner ByteDance didn’t divest, TikTok is once again facing an existential threat. In April, President Biden signed a law that will ban TikTok in the US unless its parent company, ByteDance, sells its stake in the app within a year, citing perceived risks to national security and user safety. That said, the law has already faced numerous legal obstacles, with a US court set to hear challenges to the potential ban this September.

Even in the face of all the controversy, TikTok has become a go-to app for millions of users and a must-use for countless advertisers. Here, we explore the evolution of TikTok through a collection of stats and facts. We’ll cover all the good stuff and all the ban-related stuff as we look to paint a picture of why TikTok continues to be the talk of the digital advertising town.

TikTok’s Meteoric Rise In Popularity

It is, quite literally, a multi-billion-dollar question: Just how did TikTok go from being a niche player to one of the most popular apps on the planet? The reality is there is no single answer, but instead a combination of factors: simple and easy-to-use video creation tools that blur the metaphorical line between creator and consumer; shrinking attention spans that pave the way for short-form video to thrive; a vast library of licensed music that allows users to easily enrich their clips with audio without fear of copyright infringement; and a community and collaborative feel within the platform (think hashtag challenges and Stitch). Its model is so successful, in fact, that it has frightened Meta and YouTube (among others) into disrupting their own business—Instagram Reels and YouTube Shorts, anyone?

• TikTok’s ascent has been swift. Its worldwide user base increased by more than 93% since 2020 (465.7 million to 900.7 million this year), and by 2025, it is projected to have 955.3 million users.
• The number of US monthly TikTok users has reached 150 million, and nearly five million American businesses have a presence on the app.
• After surging during the height of the COVID pandemic, time spent on TikTok is levelling out. US adults are currently spending roughly 54 minutes on the platform per day, and, assuming it doesn’t face a nationwide ban, is forecast to become the top social network in daily minutes by 2025.
• Consumers feel a deeper connection to brands they interact with on TikTok: 41% of viewers say they trust a brand more after seeing an ad on the platform and 31% say they’re more likely to be loyal to a brand after seeing their TikTok ad.

The TikTok Effect On Marketing And Advertising  

“Don’t make ads, make TikToks.”

That was the invitation TikTok laid out for advertisers when it opened its brand-facing wing back in 2020. And with the company’s revenues skyrocketing, it appears that challenge has been gleefully accepted. TikTok’s ad business made its first foray into performance marketing with lead-generation ads that empower brands to collect information from prospective consumers through forms and contests. Since then, TikTok has been busy significantly expanding upon those offerings, rolling out formats like interactive add-ons, search ads, and collection ads that together play a fundamental part in the app’s monetization strategy.

• US TikTok ad revenues are projected to reach $10.42 billion in 2024 (representing more than 38% growth from 2023) and are estimated to hit $15.26 billion in 2026.
• US TikTok ad revenues per user are also forecast to increase this year, rising 31.1% up to $96.71, before climbing again all the way to $130.31 in 2026.
• This year, TikTok will make up 3.4% of the total US digital ad market, 2.7% of the total media ad market, and 12% of the total social ad market.
• Based on engagement rate per follower, higher education institutions (9.5%), sports teams (4.2%), and food & beverage (4.0%) represent the top-performing industries on TikTok. Ranking lowest on the list? Fashion (1.4%) and health and beauty (1.4%).
• One survey found that TikTok is the preferred format for short-form video content for 60% of ad buyers, vs. 19% who prefer Instagram Reels and 15% who prefer YouTube Shorts.
• Small businesses report getting more engagement on TikTok than on other social media sites, including Facebook, Instagram, YouTube, and X.
• 92% of TikTok users take some type of action after watching a video and 37% have purchased something they discovered through the app.

TikTok And The Highly Coveted Gen Z Audience

TikTok has disrupted how an entire generation connects, shops, entertains and educates itself, and ultimately perceives the world. To understand why TikTok is so popular with Gen Z is to understand their inherent characteristics. Research shows that one of the defining features of this generation is that they view consumption as an expression of “individual truth.” They are also the first generation of digital natives, so they’re well-acquainted with digital advertising tactics and therefore naturally drawn to fresh ideas and creative storytelling (for example, unfiltered videos!). The fact that TikTok facilitates self-expression and celebrates authenticity plays right into their hands. In other words, TikTok and Gen Z were made for one another.

• Gen Z represents 49.2% of total TikTok users in the US, with millennials accounting for 35.9%, Gen X for 14.1%, and baby boomers for 8.7%. The share of Gen Z users will gradually increase over the next few years, reaching 50.3% in 2026.
• Among Gen Z adults who use social media, 41% of their social time will be spent on TikTok this year.
• Gen Z users are increasingly turning to TikTok for uses beyond entertainment, with more than half saying they choose TikTok over Google as their preferred search engine.
• TikTok users aged between 18 and 24 are spending 1 hour and 16 minutes on the app every day. That’s more than they spend on both Facebook and Snapchat combined.

TikTok’s Appeal Goes Beyond Short-Form Video

For a long time now, TikTok has been the elephant in its competitors’ boardrooms. The app’s advances in ad technology, measurement capabilities, and expansion into the digital marketing ecosystem (for instance, through music streaming and mobile gaming) indicate that TikTok is not content to simply sit in the realm of short-form video. The platform is siphoning ad dollars away from Meta, but the diversification of its portfolio could soon pit TikTok against the likes of Spotify, Apple, Amazon, and Google as it transforms into a public square for news and conversation.

• TikTok users are almost twice as likely to discover new music than the average social media user.
• The app’s role as a news source is climbing, further cementing its position as a go-to search tool for users—currently, 43% of users say they regularly get news from the app, a notable increase from the 33% who reported the same in 2022.
• Beyond using it for their text searches, TikTokers are increasingly using the app as a visual search tool: 40% of Gen Z open TikTok or Instagram, not Google, when searching for nearby lunch spots.
• Over 70% of Gen Zers who discover new brands or products on social media use TikTok to do so.

An Uncertain Road Ahead

After the US federal government and numerous states outlawed use of the app on government-issued devices (something many other countries have done as well), earlier this year, President Joe Biden signed a law that will force ByteDance to sell its wildly popular app—or face an outright ban across the US.

This isn’t the first time that TikTok has felt the metaphorical heat, and the months ahead should provide greater clarity on the future of the app in the US. Creators on the app, as well as TikTok itself, have filed lawsuits against the federal government in the wake of this law, and hearings are set for September. Even barring a federal ban, the app is facing regulation and scrutiny at a variety of levels.

• More than 25 states have banned TikTok on government-issued devices, including all mobile phones, tablets, and computers.
• At least 20 public universities across the US have also made the decision to ban the app from their servers and/or have recommended their students remove it from their personal devices. Auburn University, University of Oklahoma, University of Texas-Austin, and Texas A&M—the biggest college campus in the US—are on the growing list.
• If TikTok were to get the axe, Google and Meta would stand to benefit the most. It’s estimated that Meta could draw up to 60% of the app’s US ad revenue, where YouTube might acquire 25%.
• Marketers have also acknowledged some of the concerns surrounding TikTok: 60% say they think questions over the app's data privacy and national security are justified, and 47% reportedly believe that TikTok’s algorithm is not transparent. Despite those issues and the threat of a ban, many advertisers say they plan to remain on the app “until the door slams shut.”

TikTok By The Numbers—Wrapping Up

TikTok grew into a digital advertising powerhouse seemingly overnight. Its consumer appeal and high engagement rates across numerous verticals make it a worthy option for ad spending for a wide variety of marketing teams. But as a new(ish) channel, figuring out just where it fits into the digital media mix and how much budget should be dedicated to the platform remains up in the air for many brands. And with the threat of a ban looming, marketers would be wise to start scenario planning and maintain flexibility with social ad buys so they can quickly pivot to an alternative video platform quickly if needed.

One thing is for sure, though: TikTok remains social media’s golden child, and there are great rewards available to those that get it right.