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"Part of TikTok’s success lies in the combination of user-generated content, short looping videos and robust video editing tools," App Annie Senior Market Insights Manager Lexi Sydow wrote in a blog post explaining the data. "TikTok represents a powerful opportunity for businesses to engage with a large global base of invested consumers."
TikTok's China-based parent company, ByteDance, is also expected to generate 180 billion yuan, or $27.2 billion, in Chinese advertising revenue this year, Reuters reported Friday, citing two sources familiar with the matter.
The app ranked No. 2 in gaming by global consumer spend in the third quarter of 2020, according to App Annie, and will rank No. 2 in China's digital ad market, Reuters reported.
"Many of the most used social media apps don’t break into the top consumer spend charts, as they primarily monetize from ad revenue. While TikTok monetizes through ads, it also allows users to transact in the app through sales of virtual gifts used for tipping streamers...creating a positive feedback loop which further encourages creativity and spending," Sydow wrote.
TikTok said in an August blog post that it has about 100 million monthly active American users.
The Chinese tech giant is challenging the Trump administration after the president signed an executive order in August banning the app by Sept. 21 if it did not sell its U.S. operations to American companies, citing national security concerns over Chinese control of user data. The company requested an extension as it continues to challenge the order.
Walmart and Oracle initially announced that they had reached a $60 billion deal with the company in September that would shift TikTok's global headquarters to the U.S. and give Americans more control over the app's U.S. operations.
Defense Secretary Mike Pompeo and other U.S. officials, however, said in September that the deal did not meet U.S. security standards since ByteDance would maintain complete control over its algorithm, as well as some control over the global headquarters.
Tiktok said in a Thursday statement on Twitter that despite engaging with the Committee on Foreign Investment in the United States in good faith to address its national security concerns, there has been "no substantive feedback" on its "extensive data privacy and security framework" from President Trump following preliminary approval on a sale of its U.S. operations.
FOX Business' Lucas Manfredi contributed to this report.