May 23, 2022

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TikTok will share its advertising revenue with content creators

TikTok will share its advertising revenue with content creators

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New York (AFP) – TikTok announced Wednesday that it will consider implementing ad revenue distribution with the platform’s most-viewed content creators, approaching a model already used by rival platforms.

“We will begin to study the first revenue-sharing program with creators, public figures and press publishers,” the subsidiary of Chinese group ByteDance said in a statement.

Only accounts with at least 100,000 followers will be eligible in the first phase of this program, said TikTok, which is said to be determined to “develop monetization solutions (…) so that creators feel appreciated and rewarded.”

The site, which has become a major video platform with the pandemic, has long struggled to monetize its content, although it has been slow to realize the potential of 1 billion monthly users, a limit it crossed last year.

According to the specialized website Business of Apps, TikTok generated $4.6 billion in sales in 2021, similar to Snapchat, which only claims to have just over 300 million daily active users.

The large social networks that offer videos, such as YouTube, Instagram or Snapchat, have already implemented more or less favorable revenue sharing systems for some time.

On Wednesday, TikTok also announced the evolution of its offering to advertisers.

Advertisers can now ensure that their ads are linked to videos which are among the most popular 4% on the platform.

This new formula, TikTok Pulse, will also ensure advertisers associate their ad messages with verified and adapted content, to improve the effectiveness of their campaigns.

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