TikTok Ad Revenue (2020–2027)
As one of the most popular social media platforms not only in the United States but in the world, there’s no question TikTok is one key social network businesses need to focus on to grow their brand.
In fact, many brands are already very active on TikTok, as they strive to amplify their digital presence to reach more users. This is evidenced by recent statistics on TikTok’s ad revenue, which has been growing year after year.
TikTok ad revenue: key data
- TikTok’s ad revenue worldwide is projected to reach $33.1 billion in 2025, representing a 40.5% increase from 2024.
- TikTok’s ad revenues are forecast to grow nearly 17-fold from 2020 to 2027, climbing from $2 billion to $54 billion, amid a slowdown in annual growth rates.
- The US remains a critical market for TikTok, with ad revenues expected to hit $9.5 billion in 2025.
- Technology, toiletries and cosmetics, and clothing industries are the top advertisers on TikTok, collectively spending over $5.4 billion in 2023, showcasing the platform’s dominance in engaging consumer-driven sectors.
TikTok revenue from ads: 2020–2027
|
Year |
TikTok global annual ad revenues |
Annual change |
|
2020 |
$2.0 billion |
|
|
2021 |
$4.0 billion |
+100.0% |
|
2022 |
$11.6 billion |
+191.0% |
|
2023 |
$18.0 billion |
+55.0% |
|
2024 |
$23.6 billion |
+30.7% |
|
2025 |
$33.1 billion |
+40.5% |
|
2026 |
$44.0 billion |
+32.7% |
|
2027 |
$54.0 billion |
+22.7% |
How much does TikTok make a year from ads?
According to the latest data, TikTok’s ad revenues are projected to hit $33.1 billion in 2025, a 40.5% increase from the previous year. As it is, TikTok is the social network consumers spend the most time on, and one of users’ favorite social media platforms.
Impressive as this may be, the expected growth this year actually marks a significant slowdown from the previous years. For instance, in 2022, TikTok’s ad revenues soared by 191% year-over-year to $11.6 billion, marking its largest annual increase during the period. Despite the moderation in growth, TikTok’s ad revenues are forecast to continue rising through 2027, by which time total spending on the platform’s ads is expected to reach $54 billion.
TikTok’s ad revenue growth over time
TikTok’s ad revenue growth has been nothing short of phenomenal over the past several years, climbing from $2 billion in 2020 to an anticipated $54 billion in 2027. Analysts credit this trajectory to TikTok’s expanding user base, its growing appeal among younger demographics, and its focus on enhancing social commerce functionality.
Despite slowing growth rates, TikTok’s revenues are expected to rise nearly 17-fold from 2020 to 2027. Sustained growth is expected in key markets such as the US, the country with the second-largest number of TikTok users. In 2025, TikTok’s US ad revenues are forecast to hit $9.5 billion, a 22.9% annual increase.
TikTok ad revenue growth: biggest drivers
|
Industry |
TikTok advertising spend (2023) |
|
Technology & electronics |
$2,004 million |
|
Toiletries & cosmetics |
$1,765 million |
|
Clothing & accessories |
$1,705 million |
|
Retail |
$1,679 million |
|
Telecommunications |
$1,515 million |
|
Non-profit/public sector |
$815 million |
|
Financial services |
$790 million |
|
Leisure & entertainment |
$785 million |
|
Pharma & healthcare |
$755 million |
|
Media & publishing |
$735 million |
Several key industries are leading the charge in advertising spending on TikTok. In 2023, technology and electronics brands spent $2 billion worldwide, the highest among all sectors. Toiletries and cosmetics followed, with $1.8 billion, while clothing and accessories accounted for $1.7 billion.
Retail ($1.7 billion) and telecommunications ($1.5 billion) also contributed heavily to TikTok’s ad revenues. These industries leverage TikTok’s vast and engaged user base to boost brand visibility and drive sales. Other notable sectors include non-profit/public sector organizations, financial services, and leisure and entertainment, all of which spent close to or over $750 million.