From foreign media reports, TikTok may have had the highest global download and consumer spending in 2023, but there may be better apps in actual usage.
In 2023, Facebook continued to lead in monthly active users, followed closely by other Meta-owned apps such as WhatsApp, Instagram, and Messenger, all of which had monthly activities exceeding TikTok.
According to the latest data from Sensor Tower, although TikTok’s growth trend remains positive, signs of a slowdown have emerged. In 2022, TikTok’s monthly active user count grew at an average annual rate of 12%. However, by 2023, this growth rate had dropped to an average yearly increase of 3% per quarter.
It is worth pondering that this change occurred after TikTok introduced TikTok Shop in the United States, raising the question of whether TikTok Shop is responsible for TikTok’s significant slowdown in growth.
TikTok began testing TikTok Shop in the United States in November 2022, gradually attracting the participation of numerous brands, including PacSun, Revolve, Willow Boutique, and beauty brand KimChi Chic.
These tests expanded further in early 2023. Although TikTok Shop officially launched in the United States only in September 2023, it was one of TikTok’s many attempts to convert its video influence into actual sales and the origin of the internet meme “TikTok made me buy it.”
As TikTok Shop develops, some issues also begin to emerge. As highlighted by Business Insider in November 2023, some users complained that TikTok Shop had turned TikTok into an “ad-filled wasteland” and a “dystopian” space.
In addition, there are discussions on Reddit about whether TikTok Shop has “ruined” the app, with users pointing out the prevalence of the phenomenon of “people reselling/selling cheap products” in the app.
One user stated, “I find it very annoying that almost every video on the recommended video page is hyping up products through the Shop feature, trying to make it go viral and earn a lot of commissions.”
The user pointed out, “It’s good that creators have new ways to make money, but I find myself scrolling less and less because I know almost every video is just trying to get me to buy something I probably don’t need.”
These sentiments received support from many users, and a search on Reddit reveals more posts in 2023 expressing similar issues, complaining that TikTok has become “annoying” because of TikTok Shop.
In light of these situations, some industry insiders speculate that Instagram may benefit from user dissatisfaction with TikTok Shop. In January 2023, this Meta-owned app removed its shop tab and canceled the live shopping feature in March.
Broader industry trends drive Meta’s actions, and the future of TikTok Shop could be more optimistic.
However, users have not abandoned TikTok in favor of Instagram Reels due to dissatisfaction with TikTok Shop. Observations from Sensor Tower show that Instagram’s monthly active user growth has remained relatively stable, with growth rates in the “mid-single digits.” Since the launch of TikTok Shop, Instagram has yet to experience a noticeable positive or negative impact.
Meta’s action is driven by a broader industry trend, suggesting a less favorable outlook for the future of TikTok Shop.
Data indicates that Shop Seller growth has been strong since the fourth quarter of 2022, increasing by 230% year-on-year by the fourth quarter of 2023. TikTok has 1.4 billion active users, and Shop Seller’s active users have grown to 6 million.
In summary, the development of TikTok Shop still faces obstacles and challenges.