TikTok on Wednesday announced that it would share ad revenue with its most prominent creators, making the app more like its competitors.
The viral video app has become wildly popular in recent years, with more than a billion active users globally; however, it has been criticized for not providing a way for creators to successfully monetize content.
Under the new TikTok Pulse program, companies can place their ads next to user content in specific categories, including health, fashion, cooking, gaming and others — and creators will get a cut.
“We will begin exploring our first advertising revenue share program with creators, public figures and media publishers,” the company, a subsidiary of Chinese tech firm ByteDance, said in a statement.
“We’re focused on developing monetization solutions in available markets so that creators feel valued and rewarded on TikTok.”
Only accounts with at least 100,000 subscribers will be eligible for the first phase of the program, TikTok said.In 2021, TikTok generated an estimated 4.6 billion dollars in revenue, according to industry publication Business of Apps.
