TikTok on Wednesday announced a program to share advertising revenue with the most famous creators of the social media platform, approaching a model already used by its competitors.
The short video format app has become hugely popular in recent years with more than a billion active users worldwide, but has been criticized for not giving creators a way to effectively generate content revenue.
Under the new TikTok Pulse programcompanies can place their ads next to consumer content in certain categories, including health, fashion, cooking, games, and more – and creators will receive layoffs.
“We will begin researching our first advertising revenue sharing program with creators, public figures and media publishers,” said a statement from the company, a subsidiary of Chinese technology firm ByteDance.
“We are focused on developing revenue-generating solutions in available markets so that creators feel valued and rewarded at TikTok.”
Only accounts with at least 100,000 subscribers will be eligible for the first phase of the program, TikTok said.
The company’s general manager for North America, Sandy Hawkins, told the technical website The Verge that Pulse will launch in the United States in June and that the approved creators will receive a 50% discount on advertising revenue.
In 2021, TikTok generated approximately $ 4.6 billion (approximately Rs 35,077) in revenue, according to the industry publication Business of Apps.
That figure is more than twice the previous year’s revenue, but remains roughly on par with rival Snapchat, which has about 300 million users a day, according to Snapchat.
Other major video-focused social networks, such as YouTube, Instagram and Snapchat, have already introduced revenue-sharing systems.