TikTok Growth Predictions for 2021

By Bradian Muliadi  | Nov 24, 2020 08:09

The Current State of TikTok

TikTok Growth Projection 2021

TikTok’s Rising Revenue

The Current State of TikTok

Since earlier this year,
TikTok has surpassed the 2 billion downloads benchmark. TikTok has grown uniquely fast compared to other social media channels. Reaching hundreds of millions of downloads within the first five months of 2020 and accelerated by the rising online activities during the quarantine. The app has engaged 63% of users who claim to have liked videos at least once in the past month, making it a high engagement platform that brands flock in.

TikTok Growth Projection 2021

App Annie predicts that TikTok will not only achieve a coveted 1 Billion monthly active users status but is set to pass 1.2 billion. One of the supporting reasons for this positive prediction is TikTok’s video format. It has been said that in 2021, up to 85% of online consumers will install more video streaming apps.

One billion monthly active users (MAU) would mean a great addition to TikTok’s engagement, allowing more views, likes, comments, and clicks on popular TikTok videos. Currently, 54% of TikTok users have commented on a video and 53% have uploaded their own. The larger the active user base the app has, the more interactions will happen, which will be followed by a rise of TikTok influencers and the brand's activities.

Additionally, TikTok is likely to benefit from the same pattern it has this year. It is predicted that activities at home will be increased in the coming year. Despite developments in COVID-19 vaccines, the future of pandemic is yet to be clear. Many believe that some levels of physical distancing or “new normal” behaviors will be maintained throughout at least the first months of 2021. With activities being built around physical distancing, TikTok might be able to replicate their early 2020 success in 2021. 

TikTok’s Rising Revenue

App Annie also highlights TikTok's earning potential. TikTok has the second-highest consumer spend among non-gaming apps in Q3 2020. This happens despite TikTok is still developing and testing its e-commerce features.

Recently TikTok announced its partnership with the e-commerce platform, Shopify. Users of the e-commerce platform can now profit from TikTok engagement by promoting their products through an integrated system. Several features that are added in this partnership include enabling Shopify users to detect conversion through clicks. Shopify users are also able to run ads, target an audience, and access creativity tools to create TikToks from products listed on their Shopify. This is likely to increase the use of TikTok as a marketing channeling among e-commerce brands, as well as marking the beginning of TikTok use as a social commerce platform.

Consequently, the revenue streams for TikTok will continue to grow along with the rising use of advertisements which will rise as the active users and TikTok engagement increase. Mobile Ad spending is predicted to reach $290 billion, bolstering TikTok’s financial ability to thrive and further expanding its influence in social media. The increased competition in advertising and marketing on TikTok prompt brands to sharpen their strategies on the app. For many brands, this calls for data and insights that can be acquired through TikTok analytics tools.



The outlook for TikTok’s future is mainly positive. The app that is known for its popularity among Gen Z would likely continue thriving in the following years. With more social commerce opportunities, advertisements, and features unlocked, TikTok can reach both financial success and users’ loyalty. Given the promising future, brands and marketers are encouraged to start growing their TikTok engagement early on using TikTok analytics to better predict trends and maximize performance.


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