TikTok contribution to economic system detailed in Oxford Economics report

TikTok drove $14.7 billion in small-business homeowners’ income in 2023 and contributed $24.2 billion to U.S. gross home product final yr, in response to a report issued Wednesday.

The report, by the economics consultancy Oxford Economics, discovered that TikTok helps a minimal of 224,000 jobs in america, with the app’s biggest financial impression seen in California, Texas, Florida, New York and Illinois.

Oxford Economics carried out the research to measure TikTok’s financial worth by surveying greater than 1,000 small-business homeowners that use TikTok and seven,500 TikTok customers throughout the nation. The research predated the launch of TikTok Store, which has turn out to be a gross sales and advertising and marketing behemoth since launching final September, so the financial modeling doesn’t embody any enhance that has made to small-business income.

TikTok collaborated with Oxford Economics on the report by granting the corporate entry to knowledge on the platform.

TikTok has had the biggest impression within the food-and-beverage sector, supporting a $6.4 billion annual contribution to GDP and supporting 73,000 jobs in 2023, the report stated. The app additionally helps small companies in well being and wellness and enterprise providers, in response to the report.

Small companies’ use of TikTok as an promoting platform supplied $5.3 billion in tax income to the U.S. authorities final yr alone, the report stated. Thirty-nine p.c of the small-business homeowners included within the report stated that TikTok is essential to their companies’ existence, and 69 p.c stated the app led to elevated gross sales for his or her enterprise up to now yr, in response to the report.

Even outdoors of its person base, TikTok is a serious contributor to the economic system, the report discovered. The app’s U.S. operations supported an extra $8.5 billion contribution to GDP final yr and $2 billion in taxes, and helps greater than 59,000 jobs throughout the nation, in response to the report.

Minority teams are extra possible to make use of TikTok in contrast with non-minorities, in response to the report. Eighty-three p.c of Black small-business homeowners surveyed stated that they had seen a big enhance in gross sales after leveraging TikTok to advertise their companies; 86 p.c of Latino or Hispanic small-business homeowners surveyed reported the identical, as did 88 p.c of Asian American and Pacific Islander small-business homeowners.

All minority teams reported that TikTok was important in serving to them land model partnerships and develop income streams that might have been far tougher with out the app.

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