TikTok’s New Ad Program Gives Creators a Cut of the Money

Photo illustration in Brazil - 28 Mar 2022
Rafael Henrique / SOPA Images / Shutterstock.com

TikTok has been a springboard to internet fame for many young celebrities-in-training, and now they can add a little fortune to the mix thanks to a new advertising program that gives creators a cut of revenue.

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The new program, dubbed TikTok Pulse, lets brands 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 a part of these everyday moments and trends that engage the community,” the announcement said.

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

TikTok will share 50% of Pulse’s ad revenue with approved creators, Sandie Hawkins, TikTok’s GM of North America global business solutions, told The Verge. That’s just shy of the 55% cut that YouTube reportedly offers its top creators. TikTok’s Pulse will launch in June in the United States, with additional markets rolling out in the fall.

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Previously, TikTok’s main way of compensating creators has been through the platform’s Creator Fund, which pays select 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’re focused on developing monetization solutions and available markets so that creators feel valued and rewarded on TikTok,” the company said in its announcement. “From the very beginning, we’ve committed to working with our community to bring new features that enrich the TikTok experience.”

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TikTok Pulse continues a recent string of new monetization features on TikTok. In December, the platform unveiled its Creator Next program, which lets viewers 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 previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned 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 native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.
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