Recent data shows that TikTok experienced a surprising decline in growth in the final quarter of 2023, particularly in the US, where it actually saw a decrease in users. This is a significant shift for an app that has seen rapid expansion since its launch by ByteDance in 2016.
One possible reason for this decline is that users, especially young adults, are finding themselves with less time to spend on the platform due to increasing responsibilities associated with adulthood. As users who were initially drawn to TikTok's unique content and culture in their teenage years are now entering the workforce or pursuing higher education, they have less leisure time available for social media consumption.
According to a quarterly review by Evercore ISI analysts using Sensor Tower data, TikTok's growth rate of daily average users (DAUs) has significantly slowed down. In the fourth quarter of 2023, TikTok lagged behind other popular social media platforms such as Snapchat, YouTube, Instagram, and Facebook in terms of DAU growth.
Notably, TikTok's average monthly users in the US aged 18 to 24 declined by nearly 9% from 2022 to 2023, indicating a shift in user demographics and behavior. This decline in user engagement is concerning for investors, as TikTok's revenue model heavily relies on user engagement for advertising opportunities.
Many former heavy TikTok users have reported reducing their time on the app to accommodate new responsibilities such as work, household chores, and personal relationships. Some users have even opted to delete the app entirely or limit their usage to prioritize other aspects of their lives.
TikTok has introduced features like custom screen-time limits and sleep reminders to help users manage their time on the platform more effectively. However, the shift in user behavior towards reduced usage suggests a broader trend of users reassessing their priorities and allocating time more consciously.
As TikTok continues to navigate these changing user dynamics, it will be essential for the platform to adapt its strategies to cater to the evolving needs and lifestyles of its user base.
