According to new forecasts from WARC Media, TikTok’s global advertising revenue will reach $15.2bn in 2023 defying a digital ad market slowdown
WARC predicts all product categories will increase ad investment on TikTok with tech & electronics sector boosting spend by 14.3% to $2bn
“TikTok plays a growing role in culture around the globe,” said Alex Brownsell, Head of Content, WARC Media.
“Its potential ad reach stands at a reported 1.05bn, including 409.1m users aged 18 to 24. In 2022 it was the most downloaded app in the world for a third year running according to data from Sensor Tower. And its full-screen, vertical video format has inspired copycat products such as YouTube Shorts and Instagram Reels.
WARC notes that despite this being a year in which the wider digital ad market is set to slow and media models are coming under increasing pressure, TikTok is defying the trend as its two-year growth is set to carry on into this year.
According to WARC Media’s latest ad spend forecast, TikTok ad revenue in 2023 will be up 51.7% a near $2bn upgrade from last year’s forecast.
WARC ads that while each of the top five spending categories – technology & electronics ($2bn), toiletries & cosmetics ($1.8bn), retail ($1.7bn), clothing & accessories ($1.7bn) and telecoms & utilities ($1.5bn) – are forecast to see their combined annual spend on TikTok surpass $8.5bn in 2023, in other categories the growth will be more modest.
WARC found that advertising spend in the technology and electronics category is shifting toward digital ad formats in channels like video and audio. As one of the market’s fastest growing categories from an ad investment perspective, ad investment on TikTok is forecast to increase by 14.3% this year, to a combined investment of $2.0bn.
In the US, consumer packaged goods drove significant growth, increasing ad spend with TikTok by 84% in Q4 2022 compared to the quarter prior, according to data from Pathmatics.
