TikTok Launches Its First Ad Solution That Shares Money with Creators

Photo by Julian Hochgesang on Unsplash

In an effort to entice advertisers to TikTok, TikTok is now offering the option of putting their businesses’ content next to the most popular videos on the site. TikTok announced the debut of TikTok Pulse, a new contextual advertising solution that assures companies’ advertisements are displayed next to the top 4% of all TikTok videos, ahead of its NewFronts presentation to advertisers set for this afternoon. An ad product will include income sharing with artists for the first time.

According to the business, the TikTok Pulse program’s income sharing program is open to TikTok artists and publishers with at least 100,000 followers. TikTok confirmed to TechCrunch that the ad money would be shared 50/50 between the creators and TikTok.

We’ve been informed that the Pulse program will begin serving U.S. advertisers in June 2022, followed by more markets in the autumn.

It’s not certain how many artists TikTok will accept in the early stages of the program’s development. But in the long run, TikTok’s decision might help the social video app attract more creators after its prior investments in the monetization of its creators. “Creator Next” is the name given to the TikTok app’s new online platform for monetizing content, which launched in December of last year. Fans of creators’ videos and TikTok LIVE content may use this page to learn how to give and receive virtual gifts and payments. If they have at least 10,000 followers, they may apply to the Creator Marketplace to be linked with businesses for sponsored content.

Creators will be able to earn money using TikTok’s new advertising revenue split option.

However, the update isn’t solely for the benefit of the developers. Like YouTube’s Partner Program, it’s also about ensuring marketers have a more “brand-safe” environment for their content (YPP).

Ad money from the display, overlay, and video advertisements may be earned via the YouTube Partner Program, providing access to additional services such as channel subscriptions, Super Chat, a merch shelf, etc. Additionally, YPP allows marketers to target videos from more popular and subscribed producers, who YouTube has also approved for their content regulations. This enables companies to regulate the placement of their adverts so that they don’t appear next to hate speech or other falsehoods.

TikTok said its new TikTok Pulse initiative would also ensure that the creator material is “appropriate” for advertising.

Our unique inventory filter makes sure our highest degree of brand compatibility is applied to verified content on the site, according to a statement from TikTok. Third-party brand fit and viewability verification allow marketers to examine their ads’ effect, the report says.

In addition, TikTok claims the scheme would allow marketers to focus their adverts on certain sections of the service. As a result of Pulse, companies may display their adverts alongside videos in 12 different content categories ranging from beauty and fashion to pets and gaming.

Initially, only TikTok invited marketers will be able to use TikTok Pulse, which is now in beta. According to a TikTok spokeswoman, the solution will be extended to other businesses in the months to come.

Other specifics concerning the new Pulse ad scheme, such as ad pricing and how quickly someone surfing TikTok’s For You page would see Pulse advertising, were kept under wraps.

During the NewFronts, Sandie Hawkin, GM of North America Global Business Solutions at TikTok, and Sofia Hernandez, the company’s global head of business marketing, spoke with advertisers about their interest in using TikTok as part of their media buys.

A few additional information regarding the new Pulse program was revealed during the event, including that the inventory will be restricted and premium and acquired via the TikTok Ads Manager at a set CPM. As an alternative to using the brand safety filter or a third-party verification service, advertisers may use one or the other. IPG and OMG, two of the largest brands and agencies globally, have already agreed to participate in the program.