TikTok thrives amid regulatory pressure as ByteDance sets sights on global dominance

Global expansion continues despite regulatory scrutiny

• TikTok remains one of the fastest-growing platforms, thriving despite mounting divestment threats
• ByteDance continues to deliver strong performance across advertising, e-commerce, and user engagement

TikTok, the Chinese-owned social media app, continues to expand its global influence despite significant regulatory challenges and geopolitical headwinds. Together with parent company ByteDance, the platform has recorded impressive gains across multiple business lines, including advertising and commerce.

Even as US lawmakers debate legislation that may force a sale of its American operations, TikTok remains a cornerstone of digital strategy for millions of global brands and small businesses alike.

Advertising revenue surges as TikTok becomes an ad powerhouse

• TikTok’s ad revenue is forecast to reach $33.1 billion by 2025, a 40.5% year-on-year increase
• The platform supported over 7 million US businesses in 2024 alone

TikTok’s advertising business is a key driver of growth for ByteDance. In 2024, TikTok generated approximately $14.15 billion in revenue, with projections indicating that figure will surge to $33.1 billion by 2025. This growth reflects the platform’s growing role in the global digital ad ecosystem, where it is increasingly favoured by marketers seeking direct consumer engagement and high conversion rates. More than 7 million businesses in the United States alone used TikTok for marketing and sales activity last year, underscoring its relevance in performance-driven campaigns.

TikTok Shop fuels e-commerce momentum

• TikTok Shop attracted 55 million buyers in 2023, with user growth projected to rise 67% by 2026
• US sales hit $853 million in 2023, representing 7.7% of global merchandise value

TikTok’s e-commerce arm, TikTok Shop, is rapidly transforming the platform into a major retail force. By the end of 2023, it had drawn in 55 million buyers globally, and that figure is expected to increase by 67% by 2026. In the United States, TikTok Shop recorded $853 million in gross merchandise value (GMV), accounting for nearly 8% of its global total. The platform’s unique integration of short-form video and direct shopping encourages impulse buying, with 71% of users saying they’ve purchased products discovered on their feed. Globally, 58% of users engage with commerce features, translating to over 1 billion active shoppers.

User growth steadies but outpaces legacy platforms

• TikTok is expected to reach 2.14 billion users in 2025, a 4.2% rise from 2024
• While growth is moderating, TikTok still outperforms rivals like Instagram and Facebook

While TikTok’s user growth is slowing from previous double-digit gains, it remains formidable. The app is forecast to reach 2.14 billion users in 2025 – a 4.2% increase over the prior year. Although less aggressive than earlier growth cycles, this still places TikTok ahead of legacy platforms like Instagram and Facebook, which are struggling to maintain momentum in saturated markets.

ByteDance chases Meta with bold revenue ambitions

• ByteDance is targeting $186 billion in revenue by 2025, up 20% from the previous year
• Growth is led by TikTok’s global momentum, countering weaker performance in Douyin

ByteDance is aggressively positioning itself to rival the world’s biggest tech companies, setting a revenue target of $186 billion for 2025—a 20% increase from the estimated $155 billion generated in 2024. While Douyin, the Chinese version of TikTok, is seeing signs of slowing growth, international markets continue to deliver strong results. TikTok’s global advertising, e-commerce, and content strategies are now the main engines driving ByteDance’s topline performance, bringing it into direct competition with Meta on a global scale.

US regulatory risk clouds TikTok’s American future

• Lawmakers in the United States are pressuring ByteDance to divest TikTok’s US business
• A 90-day deadline extension from President Trump delays action, but uncertainty remains

TikTok’s global success has not insulated it from political risk. In the United States, regulators have stepped up efforts to force ByteDance to divest TikTok’s US operations due to concerns around national security and data privacy. While President Donald Trump recently granted a 90-day extension to allow time for a compliant resolution, the legal uncertainty continues to affect investor sentiment and strategic planning. With no deal yet finalised, the fate of TikTok’s American presence remains unresolved heading into the September deadline.

Shou Zi Chew, CEO of TikTok Inc., during a Senate Judiciary Committee hearing on Wednesday, 31 January, 2024