TikTok has been expanding its footprint in Europe, with a noticeable surge in activity over the past year. According to the Financial Times, which cited data from the UK Companies Registry, the platform generated more than $990 million in 2021 from vertical videos produced in China, a figure that nearly six times the $172 million reported for 2020. This rise aligns with broader growth across the app and reflects the rapid momentum TikTok has gained in the global market.
On the other side of the equation, the social giant also saw a significant uptick in casual users, a trend linked to the app’s burgeoning popularity. Current estimates place TikTok at surpassing 1 billion monthly active users worldwide. The growth in downloads in recent years has elevated ByteDance, the Beijing-based company behind TikTok, onto a leading position in the tech sector. ByteDance has increased investments to expand into new markets, refine targeted advertising, and recruit thousands of employees. The company reported a pre-tax loss of $896 million in the period reviewed.
Financial documents reviewed by the Financial Times indicate that TikTok employed 4,396 people across Europe, including the United Kingdom. Roughly 1,000 million euros in revenue was generated within the European Union, with an additional 279 million euros recognized within the UK market.
TikTok’s business model
Much like major platforms that rely on advertising, TikTok’s core revenue comes from digital advertising and related services. Of the 990 million euros generated in Europe in 2021, more than 802 million euros came from online advertisements. This revenue stream helped drive a substantial increase in ad income, especially since the platform began offering advertising options a couple of years earlier.
In parallel with its advertising push, TikTok has explored integrating in-app purchase links to broaden its e-commerce capabilities. While this feature has faced several hurdles, the Financial Times notes that there are plans to expand this initiative into the North American market, aiming to connect content creators, advertisers, and shoppers in a unified experience.