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TikTok to Launch Ad Revenue Sharing Program For Creators

tiktok to launch ad revenue sharing program for creators

TikTok announced on Wednesday that it will share advertising revenue with its creators. This helps make TikTok more profitable and competitive with other social media platforms.

The short-video format app has had a lot of success in the last few years due to more than a billion active users globally. But there is still criticism on the lack of monetization opportunities for creators.

Under the new TikTok Pulse program, companies can place their ads next to user content in specific categories, including health, fashion and cooking. Creators will also get a cut of the profits.

“We will begin exploring our first advertising revenue share program with creators, public figures and media publishers,” the company, a subsidiary of Chinese tech firm Byte Dance, said in a statement.

He also said “We’re focused on developing monetisation solutions in available markets so that creators feel valued and rewarded on TikTok.”

Only those with at least 100,000 subscribers will be eligible for the first phase of the program, TikTok said.

The company’s North America General Manager, Sandie Hawkins, told tech website The Verge that Pulse will roll out in the United States in June. They’ve also approved creators who will get a 50% cut of ad revenue.

TikTok is estimated to generate 4.6 billion dollars in revenue in 2021 according to a recent publication. The figure is more than double the previous year’s revenue, but still lags behind competitor Snapchat, which has about 300 million daily users.

Other major social networks that focus on video, such as YouTube and Instagram, have already implemented revenue-sharing systems.

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