Oxford Economics Reports: TikTok Contributed $24 Billion to U.S. Economy in 2023

Oxford Economics published summary findings of a study that measures the economic impact generated by U.S. small- and mid-sized businesses on TikTok. According to research conducted in the summer of 2023, U.S. small- and mid-sized businesses (SMBs) that marketed or advertised on TikTok generated nearly $15 billion in revenue in 2023. SMBs on TikTok also placed a significant value on the free services provided by TikTok, which help them grow organically. These two value streams together supported a $24.2 billion contribution to U.S. the gross domestic product (GDP) in 2023. The study also found that nearly 40 percent of SMBs say TikTok is critical to their existence, which is home to seven million businesses and 170 million active users in the U.S.

The research by Oxford Economics also shows:

• 224,000 jobs were supported by SMBs using TikTok as a platform to grow and expand their business;
• SMBs who used TikTok as an advertising and marketing platform supported a total of $5.3 billion in taxes to the U.S. government in 2023; and
• TikTok’s U.S. operations themselves supported an additional $8.5 billion contribution to the GDP, $2 billion in taxes, and 59,000 jobs across the U.S. economy in 2023.

TikTok has become an integral part of the social fabric of the U.S., serving as a powerful platform for both individuals and businesses to learn, engage, and thrive. As this study shows, TikTok has been a huge benefit to SMBs, helping them find new customers, grow their businesses, and create jobs.

Across the sectors covered in the study, the contribution to GDP from SMBs on TikTok was highest in the food and beverage industry, supporting $6.4 billion and 73,000 jobs in 2023. The health and wellness sector contributed $3.9 billion, while the business services sector contributed $3.6 billion, underscoring the diverse range of industries that thrive on TikTok.

The study, commissioned by TikTok in May 2023, reveals a compelling narrative of how TikTok has not only fueled business growth but also sheds light on its substantial footprint in the U.S. economy. The study highlights how TikTok has evolved into a dynamic economic engine that drives growth, fosters innovation, and creates opportunities for businesses and individuals nationwide.

Download the Oxford Economics Impact Executive Summary and infographic here