TikTok introduces its first advertising product to offer revenue sharing with creators – TechCrunch

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TikTok is introducing a new way to attract advertisers to its platform by giving them the opportunity to showcase their brands’ content alongside top videos on TikTok. Ahead of its NewFronts presentation to advertisers scheduled for this afternoon, TikTok announced the launch of TikTok Pulse, a new contextual advertising solution that ensures brands’ ads are placed next to 4% of all videos on TikTok. Notably, the solution will also be the first ad product that involves revenue sharing with creators.

The company said creators and publishers with at least 100,000 followers on TikTok will be eligible for the revenue share program during the initial phase of the TikTok Pulse program. There will be a 50/50 split of ad revenue with creators, TikTok told TechCrunch.

The Pulse program will launch to US advertisers in June 2022 with additional markets to follow in the fall, we are told.

TikTok did not specify how many creators it would actually approve for the program in the early stages. But in the longer term, the move could help TikTok attract more creators to its social video app, following its previous investments in creator monetization. Last December, TikTok launched an online “Creator Next” portal where it organized all the tools creators can use to earn money on its app in one place. Here, creators can learn how to accept virtual gifts and payments from fans who watch their TikTok LIVE videos and content. They can also apply to the Creator Marketplace to be matched with brands for sponsored content if they have at least 10,000 followers.

Now, TikTok will be able to add ad revenue share to this list of creator monetization opportunities.

Picture credits: ICT Tac

However, the new program isn’t just about helping creators. It’s also about ensuring advertisers have a more “brand-safe” environment for their content, similar to something like YouTube’s Partner Program (YPP).

On YouTube, the YouTube Partner Program allows creators to generate advertising revenue from display, overlay and video ads on their channel, in addition to giving them access to other features such as channel subscriptions, Super Chat , a merchandise shelf, etc. For advertisers, meanwhile, YPP enables them to reach videos from creators with more traction and subscribers, whose channels have also been approved by YouTube to adhere to its content policies. This helps brands control the placement of their ads, so they aren’t accidentally published alongside hate speech or misinformation, for example.

TikTok says its new TikTok Pulse program will also focus on making sure creator content is “suitable” for ads.

“Our proprietary inventory filter ensures that TikTok Pulse ads are served alongside verified content with our highest level of brand appropriateness applied on the platform,” a TikTok announcement states. “Additional post-campaign measurement tools such as third-party brand appropriateness and viewability verification provide advertisers with the ability and transparency to analyze and understand the impact of their campaigns,” it said. he noted.

The company says the program will additionally give brands a way to target their ads to particular areas of TikTok. Using Pulse, brands can place their ads alongside videos in 12 content categories, including things like beauty, fashion, food, games and more.

At launch, only TikTok advertisers invited to join the program will have access to TikTok Pulse. But a TikTok spokesperson said the plan was to roll out the solution to more brands in the coming months.

TikTok declined to share any other specific details about the new program, such as ad pricing or information on how quickly someone browsing its For You page would see Pulse ads appear, among other things.

Later this afternoon, TikTok is due to showcase its platform to advertisers at NewFronts, where TikTok’s managing director for its North America global commerce solutions, Sandie Hawkins, and its global head of commerce marketing, Sofia Hernandez, will talk about TikTok Pulse and will explain to advertisers why TikTok should be part of their media buying considerations.

Update, 5/4/22, 2:33 PM ET: After posting, TikTok reconsidered its original response and opted to share that the revenue split would be 50/50 with creators. The article has been updated with the new information.

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