TikTok recently announced that it would begin sharing ad revenue with some of its most successful creators. This is part of a new program which allows advertisers to place advertisements alongside top videos on the app, similar to YouTube’s creator payment program. It might also lead to larger payouts from the site, which has yet to create a viable revenue stream for creators.
Until now, TikTok’s main mode of compensating creators has been through its “Creator Fund,” which rewards users based on the success of their videos. However, several creators have complained that the rewards from this scheme are small and inconsistent, implying that it does not provide a sustainable cash stream like YouTube’s ad program does for some video makers.
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For a long time, YouTube has offered a similar ad revenue sharing program to video creators with any amount of subscribers. Users who want to monetize their YouTube videos can do so by allowing advertisements to play before, during, or after their videos. Since 2020, TikTok has paid its popular creators through a program called the Creator Fund, which is operated by Chinese startup ByteDance. Users must have at least 10,000 followers and 100,000 views in the last 30 days to earn money through the program, which pays based on the number of views and participation.
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The new TikTok Pulse program allows advertisers to target “the top 4% of all TikTok videos,” according to the firm’s blog post. When their videos are included, creators and publishers with at least 100,000 followers are eligible for a part of the earnings.
Sandie Hawkins, TikTok’s GM of North America global business solutions, told The Verge that TikTok would share 50 per cent of ad revenue from Pulse with approved creators. That’s similar to what YouTube provides producers, that is 55 per cent cut of ad revenue. According to Hawkins, TikTok’s Pulse will premiere in the United States in June, with more markets following later this fall.
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According to Forbes, TikTok’s highest-paid celebrities, including Charli D’Amelio, Dixie D’Amelio, and Addison Rae, earned $55.5 million in 2021, up 200 per cent from the previous year, primarily through sponsorships and other ventures.
TikTok Pulse will debut in the United States in June and expand to other markets in the fall, according to the company.