TikTok Usage Shows Signs of Slowing Down, and TikTok Shop May Be a Contributing Factor
The Rise of TikTok Shop
In 2023, TikTok was the world’s top app by downloads and consumer spending. However, it didn’t hold the number one position in terms of actual usage. Facebook maintained its lead as the most-used app, followed closely by other Meta-owned apps like WhatsApp, Instagram, and Messenger. Now, new data suggests that TikTok’s growth has begun to slow down, raising questions about whether the app’s e-commerce expansion through TikTok Shop is responsible.
Decelerating Growth
According to Sensor Tower, while TikTok’s user base continues to grow, this growth is slowing down. In 2022, the app saw an average of 12% year-over-year growth in monthly active users per quarter. However, in 2023, this figure dropped to just 3% year-over-year growth per quarter. This trend coincides with TikTok’s launch of its e-commerce initiative, TikTok Shop.
The Expansion of TikTok Shop
TikTok began testing its shopping feature in the US in November 2022 and expanded it further at the start of last year. Many brands, including PacSun, Revolve, Willow Boutique, and KimChi Chic, partnered with TikTok to offer their products directly through the app. The official launch of TikTok Shop in the US took place in September 2023.
Impact on User Experience
However, the introduction of TikTok Shop has started to receive criticism from users. Some have complained that the app is becoming an "ad-filled wasteland" and a "dystopian" space due to the prevalence of shopping-related content. A Reddit user noted that every other video on their For You Page was someone trying to promote products from TikTok Shop, making it frustrating to scroll through.
No Escape for Users?
Despite the growing concerns about TikTok’s e-commerce expansion, users don’t seem to be abandoning the app in favor of Instagram Reels. Sensor Tower found that Instagram’s monthly active user growth has remained relatively consistent at "mid-single digits" and hasn’t been significantly impacted positively or negatively since the launch of TikTok Shop.
Revenue Growth vs. Downloads
Data from Appfigures also suggests that while TikTok’s revenue is growing, its downloads have been stagnant or dropping more than growing. This trend has been ongoing for over a year, both globally and in the US.
What Does the Future Hold?
As TikTok continues to expand its e-commerce offerings, it will be interesting to see how this impacts user engagement and growth. Will the app’s focus on shopping lead to increased revenue, but at the cost of a more cluttered and overwhelming experience for users? Only time will tell.
Related Topics:
- Apps
- Commerce
- Reels
- Social
- TikTok
- TikTok Shop
