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TikTok To Share Ad Revenue With Content Creators Soon

With TikTok soon to launch ad revenue share plan, YouTube offers a similar incentive to producers, who are claimed to receive a 55% cut of ad revenue.

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TikTok is providing producers with a new means of generating income. Whenever certain commercials use videos from well-known musicians, the company aims to begin sharing a portion of the revenue with the artists in question. The model is similar to how YouTube pays out producers. It has the potential to result in higher payouts from the platform, which has struggled to develop a sustainable revenue stream for content producers.

Advertisers will be able to target “the most popular 4% of all TikTok videos” under the new TikTok Pulse program, according to a blog post published by the company. The producers and publishers who have at least 100,000 followers are eligible to receive a portion of the earnings from their videos when they are included.

According to Sandie Hawkins, TikTok’s GM of North America global business solutions, TikTok would divide 50% of ad revenue from Pulse with approved creators. YouTube offers a similar incentive to producers, who are claimed to receive a 55% cut of ad revenue. According to Hawkins, TikTok’s Pulse will debut in the United States in June, with additional markets to follow later in the fall season.

So far, the “Creator Fund” has served as TikTok’s principal method of compensating creators, rewarding users depending on the performance of their videos uploaded to the platform. However, numerous producers have claimed that the payouts from this system are modest and inconsistent, signalling that it does not provide a long-term funding stream for video creators in the same way that YouTube’s ad program does for some of them.

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