TikTok to Share Ad Revenue with Creators
TikTok is the latest social media platform to announce a new way for content creators to make money on the app, similar to YouTube’s ad revenue sharing system.
Up to this point, TikTok content creators had only one way to profit from their success on the app, through the app’s “Creator Fund,” but the initiative lacked consistency and payouts were often small, reports The Verge.
Introducing TikTok Pulse
TikTok has now announced a new program called TikTok Pulse. Through this program, the app will allow ads to run alongside the top 4% of all videos on TikTok, meaning brands will get a boost in exposure while the creators get a cut of ad revenue.
To qualify for the initial stage of TikTok Pulse, creators have to have at least 100,000 followers. The app will share 50-percent of its ad revenue with eligible creators, almost in line with YouTube’s 55-percent ad revenue paid out through its Partner Program.
Video Content is Profitable for Creators and Apps
YouTube’s revenue-sharing offering is currently one of the most profitable ones among other social media apps, which is why many creators have found it appealing. In 2021 alone, YouTube generated $28.8 billion in ad revenue, boosting the creator economy.
Similarly, Instagram’s first step toward shared ad revenue for content creators was in 2020 when the company announced creators will be able to earn from ads on IGTV and from purchasable Badges on Instagram Live.
Later, Instagram also announced it is no longer a photo-sharing app. This kickstarted various initiatives to tap into content creator business tools such as new online shopping features, affiliate commerce, and a branded content marketplace. The app also received a large financial boost from Facebook to further incentivize content creators.
Instagram’s recent updates have heavily focused on utilizing video content, taking the app’s experience closer to that of TikTok. However, now with TikTok offering a new way to earn on the platform, it’s likely to establish a loyal current user base and will attract even more new users looking for ways to earn.
The TikTok Pulse program will launch in June in the United States, with other markets opening later this fall.
Image credits: Stock photos from Depositphotos
