803In 2024, TikTok soared to become the world’s fourth largest social platform with annual revenue of $23 billion, trailing only Facebook, Instagram, and YouTube. This figure represents a significant 43% increase from $16.1 billion in 2023, marking the official entry of short video social platforms into the ranks of business giants.
Even more noteworthy is that its e-commerce business gross merchandise value (GMV) surpassed $33 billion, a 32-fold increase compared to three years ago, making it a new force reshaping the global e-commerce landscape.
Image source: Internet
Revenue Structure: Advertising Dominates, E-commerce Rises
TikTok’s business empire is built on three main pillars:
Advertising engine in full swing: In 2024, advertising revenue reached $17 billion, accounting for 74% of total revenue. The US market alone contributed $12.3 billion in advertising revenue, making up more than 50% of global ad revenue.
Social e-commerce emerges: Leveraging the strong driving force of short videos and live streaming, TikTok Shop’s GMV swelled from $1 billion to $33 billion in three years, facilitating about $32 million in daily merchandise transactions.
In-app purchases continue to grow: Including virtual gifts, membership subscriptions, and more, in-app purchase revenue exceeded $2 billion, making it the world’s most profitable non-gaming app.
This diversified revenue structure enables TikTok to demonstrate strong resilience even when facing policy risks in the US market.
Even under regulatory pressure, TikTok still gained 98 million new users in 2024, with US user numbers remaining stable and no loss observed.
Image source: Internet
Global Expansion: Southeast Asia as Growth Engine, Europe Accelerates Deployment
1. Southeast Asia: The Main Battlefield of Social E-commerce
In 2024, Southeast Asia’s e-commerce GMV reached $128.4 billion, with TikTok Shop contributing $22.6 billion, raising its market share to 17.6%.
In its largest market, Indonesia, the platform achieved deep integration with local e-commerce Tokopedia, driving a 15-fold surge in transactions by certified “mall” sellers within half a year. Fashion, beauty, and food & beverage became the hottest categories.
Logistics partners such as J&T Express confirmed this growth—TikTok Shop’s parcel volume in Indonesia accounted for 34% of the country’s total e-commerce parcels, meaning nearly one in three parcels comes from a TikTok consumer.
2. Europe: Dual Breakthrough in Users and Commerce
In the second half of 2024, the EU saw 9 million new monthly active users, bringing the total to 159 million. With a solid user base, TikTok’s e-commerce business accelerated its rollout:
• Sites in Germany, France, and Italy opened to local sellers
• Official logistics services (Fulfillment by TikTok) launched in the UK, Germany, and Spain
• France leads with 25.1 million users, while Germany, Italy, and Spain each have over 21 million users
3. United States: Users’ Purchasing Power is Astonishing
Despite policy uncertainty, US users still show strong willingness to spend: 47.2 million social shopping users (43.8% of total users) generate about $32 million in daily transactions. By 2027, the proportion of shopping users is expected to rise to 45.9%.
Image source: Internet
Future Battlefield: Racing Toward the New $30 Billion Milestone
ByteDance’s valuation has climbed to $400 billion, with TikTok’s commercialization capability as a key support. In 2025, two major trends will drive its revenue to surpass $30 billion:
Deepening e-commerce localization: After the successful validation of the “mall” model in Indonesia, this certification system is being promoted to multiple countries, supporting brand merchants through traffic tilt and replicating Douyin E-commerce’s successful path in China.
Breaking through in the Americas: The Mexico site, as the first stop into Latin America, achieved sales of 2.36 million yuan in its opening week. If the trial succeeds, Brazil, with 85 million TikTok users, will become the next battlefield.
Image source: Internet
As traditional e-commerce platforms face bottlenecks in traffic growth, TikTok has opened a new growth channel with its integrated model of “content + social + shopping.”
Short videos are not just entertainment—they have become the infrastructure reshaping global consumer behavior. As one in two American users places orders while watching videos, and one in three Indonesian online shoppers shops via TikTok, this platform, once seen as a “time killer,” is proving itself to be a “business engine.”
