Topline
TikTok said Wednesday it will start sharing ad revenue with some popular creators, as the social media company announced a new program for advertisers to run ads alongside top videos on the app, similar to YouTube’s creator payment program.
TikTok influencers Florin Vitan (L) and Alessia Lanza perform a video for the social network TikTok … [+]
Key Facts
The new program, TikTok Pulse, will allow advertisers to place their content alongside the top 4% of videos on the app, within 12 different “culturally relevant” categories like cooking, gaming or beauty.
Creators, public figures and media publishers with 100,000 followers or more will be eligible for the initial revenue sharing program, though TikTok did not say how funds will be split between the company and its users.
TikTok Pulse will launch in the U.S. in June, and expand to other markets in the fall, a company executive told The Verge.
Big Number
1 billion. That’s how many monthly active global users TikTok said it had in September.
Key Background
YouTube has offered a similar ad revenue sharing program to video creators with any number of followers for some time. Users who choose to monetize their YouTube content can make money by allowing ads to play before, during or after their videos. TikTok, which is owned by Chinese company ByteDance, has also paid its popular creators since 2020 through a program called the Creator Fund. To earn revenue through the program, which pays based on number of views and level of engagement, users need to have at least 10,000 followers and have garnered at least 100,000 views in the last 30 days.
Tangent
Forbes estimated in January that TikTok’s highest paid celebrities, including Charli D’Amelio, Dixie D’Amelio and Addison Rae, earned a combined total of $55.5 million in 2021, up 200% from the year prior, mostly through sponsorships and other ventures.
Further Reading
TikTok Hits 1 Billion Monthly Active Users (Forbes)
Top-Earning TikTok-ers 2022: Charli And Dixie D’Amelio And Addison Rae Expand Fame—And Paydays (Forbes)
Source: https://www.forbes.com/sites/marisadellatto/2022/05/04/tiktok-will-share-ad-revenue-with-some-creators/