TikTok is the latest social media platform to announce a new way for content creators to earn money on the app, similar to YouTube's ad revenue-sharing system.
TikTok is wildly popular for its short-form video content, and the China-based app continues to grow its user base, expected to surpass 1.5 billion users this year.
Until now, the only way TikTok content creators could profit from their success on the app was through the app's “Creator Fund,” but the effort has been reported to be inconsistent and the payouts small. The Verge.
Introducing TikTok Pulse
TikTok has announced a new program called TikTok Pulse, through which the app will be able to place ads on the top 4% of all videos on TikTok, meaning more exposure for brands and creators can get a cut of ad revenue.
To qualify for TikTok Pulse's initial phase, creators must have at least 100,000 followers, and the app will split 50% of ad revenue with eligible creators, roughly in line with YouTube's 55% share of ad revenue through its partner program.
Video content is profitable for creators and apps
YouTube's revenue sharing service is now one of the most lucrative among other social media apps, which is why so many creators are attracted to it: in 2021 alone, YouTube generated $28.8 billion in advertising revenue, fueling the creator economy.
Similarly, Instagram took its first steps towards sharing advertising revenue for content creators in 2020, when the company announced that creators could earn revenue from ads on IGTV and purchasable badges on Instagram Live.
Instagram then announced that it would no longer be just a photo-sharing app, which led to a number of initiatives to empower content creators with business tools, including new online shopping features, affiliate commerce, and a branded content marketplace. The app also received a significant funding boost from Facebook to further incentivize content creators.
Instagram's recent updates, with a focus on leveraging video content, bring the app experience closer to TikTok's. But by offering new ways for TikTok to make money on the platform, it's more likely to solidify its loyal existing user base and attract even more new users looking for ways to make money.
The TikTok Pulse program will launch in the US in June, with other markets expected to follow later this fall.
Image credits: Stock photo from Depositphotos
