TikTok Pulse: How The New Ad Revenue Sharing Program Works

TikTok content creators will soon have access to a new program called TikTok Pulse that will let them share revenue by placing ads alongside their original posts. So far, TikTok has offered a handful of monetization tools to creators that include everything from brand sponsorships to receiving virtual gifts from fans that can later be cashed out as real currency.

However, the platform has lacked a model that could directly put the revenue sharing arrangement between creators and marketers. YouTube, on the other hand, offers different models for ad placements with variable revenue sharing arrangements that offer up to a 55 percent cut to creators. TikTok also has a Creator Fund in place that pays eligible accounts based on the popularity of their content, but creators have complained about issues such as lack of transparency and low payouts.

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Things are about to change with the debut of a new monetization system called TikTok Pulse. TikTok is calling it a “contextual advertising solution,” one that capitalizes on the reach of trending content to push ads and get more exposure. To put it precisely, TikTok Pulse will offer ad space alongside the top 4 percent of its most popular content. There will be a total of 12 categories that include beauty, cooking, and gaming that fall under the aegis of TikTok Pulse. And to ensure that marketers and advertisers have a tangible idea of how their campaign goes, TikTok Pulse will offer tools such as “third party brand suitability and viewability verification” to measure the impact. All that is fairly standard stuff, but the real deal here is an ad revenue sharing model with content creators. But just like how rival platforms such as Instagram measure the popularity of creators based on raw engagement figures, TikTok will also have eligibility criteria for revenue sharing with creators.

So, here’s the deal. Only content creators with a follower count north of 100,000 are eligible for TikTok Pulse. The press release does mention that this requirement will be in place during the initial stages of the program’s rollout, which means the bar for eligibility could be raised or lowered in the foreseeable future as it expands to more regions. As for the exact revenue sharing figures, TikTok tells TechCrunch that it will be a 50-50 split format, which is actually quite generous. Unlike the in-house rewards program, TikTok hasn’t provided a detailed breakdown of the revenue sharing figures between content creators, advertisers, and the platform itself. However, more details will likely surface once TikTok Pulse rolls out and creators share their experiences.

As for the rollout schedule, TikTok Pulse will be available to content creators in the U.S. market this June. There’s no official information regarding its international rollout at the moment. Moreover, the company hasn’t revealed how many creators it will initially onboard for the revenue-sharing program. A key advantage of TikTok Pulse is that it gives brands direct access to the kind of content creators that fall in line with their brand value and product demographics. In the initial phase, brands will get to participate in the TikTok Pulse program on an invite-only basis, but the policies will be relaxed in the months to come. Brands will be able to purchase ad space via the TikTok Ads Manager system, while content creators will be able to find more information and manage the revenue sharing tool via the Creator Next portal and the Creator Marketplace.

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Next: Here’s Why Your TikTok Account Is Locked (And How To Fix It)

Source: TikTok, TechCrunch

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