TikTok Is Giving Creators a New Way To Earn Ad Revenue

TikTok is rolling out a new advertising program that promises to give marketers exposure through its top-performing videos while also providing creators with a cut of advertising revenues.

The Culver City-based social media app’s TikTok Pulse program will situate ads next to the top 4% of videos, TechCrunch reported Wednesday. Additionally, creators and publishers who have at least 100,000 followers will be eligible for a 50/50 split of advertising revenues when the program launches this June.

Initially, TikTok Pulse will invite select advertisers to place ads across 12 video categories—such as beauty, gaming and cooking—meant to target specific audiences, TechCrunch reported. The ads will run next to content that the app has determined as appropriate for those advertisers, with TikTok also providing measurement tools for advertisers to analyze their ads’ performance.

TikTok’s Santa Monica-based social media rival Snap unveiled a similar program to TikTok Pulse in February, which places ads in creators’ stories and pays them a share of the revenue.

Though this is the first feature that will allow creators to receive ad revenue directly from TikTok, it is not TikTok’s first attempt to pay out its creators. The company launched its $200 million Creator Fund in 2020, though the program has since been criticized for its poor payouts. Many of the app’s stars have turned to other sources for revenue, with some creators bringing in millions through brand sponsorships and outside business endeavors.

TikTok’s advertising revenue is expected to reach $11 billion this year, with rivals like Snapchat and Instagram struggling to keep up. Snap announced several new ad initiatives of its own on Tuesday, including a partnership with Cameo that will incorporate that app’s roster of celebrity creators.