Why TikTok is the most successful App-based Business

Why TikTok is the most successful App-based Business

The first and foremost thing that business looks for when developing Apps is to have a sustainable source of revenue. Almost all app developers build an app with the foremost objective of creating new customers, retain loyal customers, create brand awareness, and finally generating revenue and making it profitable.

The  phenomenal rise

With apps like TikTok have successfully combined easy to use interface with a powerful artificial intelligence (AI), this app has reversed the pattern followed by other social media platforms. In this case, the algorithm feeds users with precisely matched viewing habits rather than recommending contents. The easy to use continuous short video format which focuses more on fun and entertainment rather than business has been popular mostly with the rural and poor population worldwide. TikTok has filled in the gap in digital entertainment which was not available to the masses owing to prohibitive costs that kept them away.

Another factor that has contributed to its rise is that Tiktok has combined the power of artificial intelligence with the rise in mobile internet. The availability of affordable mobile devices along with cheap unlimited data has seen how global audiences have shown a massive shift in their behavior on how they receive information and consume it.

How to develop profitable apps?

How to develop profitable apps?

Many app developers are trying out how to develop the best business model for apps on the lines of TikTok. Some successful business models produce the most revenue for mobile apps like TikTok.  This free use and download option of this app has made it tremendously popular as compared to other apps which allow users to download for free but requires purchase for upgrades. So far Titoki has made money through ads and selling of emojis and stickers to users.

Before starting on such projects, they need to address certain objectives that can help in maximizing revenue generation from apps.

  1.   Which target segment is the app trying to address? Fun, entertainment, tutorial, or business branding?
  2.   How different is the app in comparison to other players in the market? TikTok carved its own space in a short time due to its unique format.
  3.   Depending on the niche segment in which the app is proposed, the critical question is whether users will pay for it?
  4.   What is the short- and long-term plan of the app? Is it just going for volumes with no profits in beginning or allowing the app to settle down before trying to generate revenue from it?

Revenue model of TikTok

Tiktok has earned billions of dollars from the following business model:

In-app purchase – TikTok allows users to purchase coins which can be used to gift to talented or favorite video creators or friends.

TikTok ads – brands use this app for ads as the moment someone turns on the app the ad runs automatically. This however is more expensive than getting third-party vendors who allow creators to buy TikTok likes which is cheaper.

Subscription plan- not yet operational though Tiktok is planning to launch is music streaming services which will be a paid subscription.


Today digital marketing and video marketing companies such as SocialWick are helping companies to promote their brand on TikTok and earn revenue.  In the view of the interest shown by US-based clients to acquire TikTok, for content creators and app developers it can be a win-win strategy all along.


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