TikTok’s new advertising program gives creators a cut of the money

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TikTok has been a springboard to internet fame for many young celebrities in the making, and now they can add a small fortune to the mix thanks to a new advertising program that offers creators an income cut.

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The new program, dubbed TikTok Pulse, allows brands to 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 part of those everyday moments and trends that engage the community,” the announcement reads.

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 subscribers are eligible to get a revenue cut when their videos are included, The Verge reported.

TikTok will share 50% of Pulse ad revenue with approved creators, Sandie Hawkins, general manager of TikTok’s global business solutions for North America, told The Verge. That’s just short of the 55% discount YouTube would offer its top creators. TikTok’s Pulse will launch in June in the US, with additional markets in the fall.

Previously, the primary means of compensation for TikTok creators was the platform’s Creator Fund, which pays certain 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 are focused on developing monetization solutions and available marketplaces so creators feel valued and rewarded on TikTok,” the company said in its announcement. “From the very beginning, we’ve been committed to working with our community to bring new features that enrich the TikTok experience.”

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

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who has previously held positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work has also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal, and Business North Carolina magazine. He holds a BA in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting has won awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A North Carolina native who also writes fiction, Vance’s short story “Saint Christopher” placed second in the 2019 Writer’s Digest short story competition. Two of her short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. Her first novel, Voodoo Hideaway, is published in 2021 by Atmosphere Press.