Like other social media platforms, TikTok has long been criticized for failing to provide creators with enough income. TikTok has set up a $200 million fund to pay creators based on a video’s popularity, but creators aren’t happy.
To address this, TikTok announced TikTok Pulse, an ad revenue-sharing program for creators. TikTok Pulse will allow advertisers to display widgets in the top 4% of videos on the platform. Advertisers can choose from 12 content categories – beauty, cooking, fashion, gaming and more.
TikTok wrote in a blog post: “To help brands stay on the pulse of entertainment and culture on TikTok, we’re excited to launch TikTok Pulse, a new advertising solution that allows advertisers to place their brands on For Next to trending content in your You Feed. TikTok Pulse is designed to give brands the tools and controls to become part of the everyday moments and trends of engaging communities.”
IT House understands that TikTok will share 50% of ad revenue with video creators who appear on ads, similar to YouTube’s partner program. TikTok will first test the feature with creators with at least 100,000 followers, launching in the U.S. in June and in more markets in the fall.
Market research firm Insider Intelligence previously predicted that TikTok’s ad revenue will triple this year to nearly $12 billion, surpassing Twitter and Snapchat combined, and surpassing YouTube in 2024.