TikTok’s growth is decelerating while its percentage of growth in active users year-over-year per quarter fell to 3% last year from an average of 12% in 2022, according to new data from market intelligence firm Sensor Tower.
While TikTok holds the number one spot in last year’s global app rankings for most downloads and consumer spending, the data shows that Meta-owned apps including Whatsapp, Messenger and Instagram are all ahead of the app in terms of their number of monthly active users.
The trend raises questions about the app’s introduction of TikTok Shop, the platform’s move into e-commerce, and its impact on TikTok’s growth trajectory.
TikTok Shop launched last year, coinciding with the drop in usage growth.
The shopping feature, though aimed at translating TikTok’s influence into real-world sales, was met with user complaints about turning the app into an “ad-filled wasteland”, as reported by Business Insider.
The user dissatisfaction with TikTok Shop could potentially benefit Instagram, which has removed its Shop tab and live shopping features as of last year.
Live shopping, despite flourishing during the pandemic, is reported to account for only 5% of total e-commerce sales in the U.S. in 2022, indicating potential challenges for TikTok Shop’s future.
While TikTok’s revenue continues to grow, stagnant downloads over the past year, both globally and in the U.S., underscore the need for developers to stay on top of evolving market dynamics and user preferences.
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