TikTok’s New Ad Program Gives Creators a Cut of the Money

Photo illustration in Brazil - 28 Mar 2022
Rafael Henrique / SOPA Images / Shutterstock.com

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TikTok has been a springboard to internet fame for many young celebrities-in-training, and now they can add a little fortune to the mix thanks to a new advertising program that gives creators a cut of revenue.

The new program, dubbed TikTok Pulse, lets brands place ads next to the top 4% of videos on the platform, TikTok announced in a blog post last week. The program is designed “to give brands the tools and controls to be a part of these everyday moments and trends that engage the community,” the announcement said.

The good news for creators is that they can now get a piece of the monetary action. Creators and publishers with at least 100,000 followers are eligible to get a cut of revenue when their videos are included, The Verge reported.

TikTok will share 50% of Pulse’s ad revenue with approved creators, Sandie Hawkins, TikTok’s GM of North America global business solutions, told The Verge. That’s just shy of the 55% cut that YouTube reportedly offers its top creators. TikTok’s Pulse will launch in June in the United States, with additional markets rolling out in the fall.

Previously, TikTok’s main way of compensating creators has been through the platform’s Creator Fund, which pays select creators based on the popularity of their videos. But creators have complained that the payouts are small and inconsistent. TikTok Pulse aims to bring a more sustainable revenue stream to creators.

“We’re focused on developing monetization solutions and available markets so that creators feel valued and rewarded on TikTok,” the company said in its announcement. “From the very beginning, we’ve committed to working with our community to bring new features that enrich the TikTok experience.”

TikTok Pulse continues a recent string of new monetization features on TikTok. In December, the platform unveiled its Creator Next program, which lets viewers send gifts and tips to their favorite creators, the Protocol website reported.

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