If you’re a creator publishing some of TikTok’s best-performing videos, then the platform has great news for you.
TikTok has announced that it will start sharing ad revenue with creators who produce the top 4% of best-performing videos.
While that’s an extremely high bar to hit, those creators now have an opportunity to make substantial revenue from their content. TikTok wants to attract those billions of advertising dollars dedicated to online campaigns.
TikTok already has a Creator Fund in place, but the payout is restricted to $200 million per year. While that works out to approximately $550K available per day, every creator in the fund has to share any funds granted with the rest of the creators eligible for a payout.
Of course, as more creators join the Fund, more money will need to be paid out among them.
In an increasingly competitive race to lure top talent to social video platforms, TikTok wants to offer an extra monetary bonus to attract – and keep creators onboard. Enter TikTok Pulse, a feature that gives brands a huge boost in exposure while giving superstar creators a cut of ad revenue.
TikTok Pulse: New Opportunities to Earn Money
In a strategic business move, the platform’s new feature, TikTok Pulse, is an ad product aimed at attracting advertisers and rewarding top creators with a 50% share of ad revenue.
The company wants to allow advertisers to place their brand next to the top content in the For You Feed. The feature will give brands access to tools that will enable them to jump on engaging trends and access the wider TikTok community.
Pulse will give marketers’ a chance to run ads on the top 4% “most engaging” brand-safe videos across 12 categories, including cooking, gaming, beauty, and fashion. Ads will be contextual so that advertising content will be aligned with organic content.
TikTok and Ad Revenue Share: Who is Eligible?
In its May 4th blog post, TikTok confirmed it initially intends to make ad share funds available to creators and publishers with at least 100k followers. But it also stated that:
“We’re focused on developing monetization solutions in available markets so that creators feel valued and rewarded on TikTok.”
TikTok’s first monetization initiative follows the direction already taken by YouTube and Instagram – to incentivize content creators to publish engaging and popular clips.
Pulse will launch in the U.S. in June in the United States, with other markets opening later this year. Stay tuned for more news.
Carla Marshall is the Content Marketing Manager at TubeBuddy. She has 10+ years of experience in video marketing, social media management, content marketing, DRM, & SEO