The inaugural 'TikTok Economic Impact Report' by Oxford Economics has revealed that the social media platform contributed a substantial $1.1 billion to Australia's Gross Domestic Product (GDP) in the last financial year.

According to the report, investments in advertising and marketing on TikTok in FY23 generated $1 billion in direct revenue for Australian businesses. With flow-on impacts, the GDP contribution grew to $1.1 billion. 78% of business respondents stated that TikTok had a positive impact on expanding their business's reach.

The platform, which has over 8.5 million Australian users and is utilised by more than 350,000 businesses, was found to support nearly 13,000 jobs.

GM of global business solutions at TikTok, Brett Armstrong, said: "TikTok has become a platform that is loved by millions of Australians and used by more than 350,000 businesses, of all shapes and sizes, to reach new customers and markets. This helps to create jobs and put money back into the economy."

The report outlined that TikTok's influence extends to consumer behaviour as well. Approximately 38% of users, equating to up to 3.2 million people, reported purchasing a product or service recommended on the platform at least once during FY23.

Around 3.5 million people (41% based on TikTok's Australian user base) visited a TikTok recommended restaurant or shop at least once. Furthermore, 21%, or 1.8 million people, purchased music or concert tickets after discovering music on TikTok.

19% (1.6 million) of people donated to a charity or highlighted cause, and around 18% (1.5 million) committed their time to volunteer. Those aged between 35-44 had the highest levels of donating (42%) and volunteering (43%) to charities with a TikTok presence.

"TikTok can act as a "signpost" to the real world, offering people a way to discover new places to visit and new products and services," an Oxford Economics spokesperson said.

The report also highlighted the platform's impact on small businesses. Brooke Saward of Brooki Bakehouse noted, "Most of my bakery sales come from TikTok, and on weekends there is a queue down the street."

The study found that 54% of businesses aged between 5 and 9 years reported using TikTok at least once a month for advertising and marketing purposes, followed by 42% of businesses under 5 years old. This underscores TikTok's growing importance as a marketing tool for businesses of all sizes and stages.