TikTok on Wednesday announced an advertising revenue-sharing program with the social media platform’s most prominent creators, coming close to a model already used by its competitors.
The short-form video app has become hugely popular in recent years with more than a billion active users worldwide, but has come under fire for failing to provide creators with a way to effectively monetize content.
Under the new TikTok Pulse program, companies can place their ads next to user content in specific categories including health, fashion, cooking, games and more – and creators will get a cut.
“We will begin exploring our first ad revenue sharing program with creators, public figures and media publishers,” the company, a subsidiary of Chinese technology company ByteDance, said in a statement.
“We are focused on developing monetization solutions in available marketplaces so creators feel valued and rewarded on TikTok.”
Only accounts with at least 100,000 followers will be eligible for the program’s first phase, TikTok said.
The company’s general manager for North America, Sandie Hawkins, told tech website The Verge that Pulse will roll out in the US in June and approved creators will get a 50% cut in ad revenue. .
In 2021, TikTok generated around $4.6 billion (about Rs 35,077 crore) in revenue, according to the industry publication Business of Apps.
That figure is more than double the previous year’s revenue, but still roughly on par with rival Snapchat, which has around 300 million daily users, according to Snapchat data.
Other major video-focused social networks, such as YouTube, Instagram and Snapchat, have already implemented revenue sharing systems.