TikTok is finally splitting ad revenue with (some) creators

TikTok is finally sharing ad revenue with creators.

The creators behind its top 4% best-performing videos, that is.

Ahead of its 2022 NewFronts presentation, the platform unveiled TikTok Pulse, a new advertiser program a bit like YouTube Select. Both programs bundle up top-performing content and creators that, crucially, are very, very brand-safe—so brands have a one-stop shop for running ads across some of the platforms’ biggest accounts and videos, ostensibly without worrying about getting caught up in another Adpocalypse.

In TikTok Pulse’s case, it will run marketers’ ads on the top 4% “most engaging” brand-safe videos across 12 categories, including but not limited to beauty, fashion, cooking, gaming, and books.

Pulse ads will be contextual, meaning TikTok aims to put sports ads on sports videos, beauty ads on beauty videos, and so on.

And, because these ads are running directly on creators’ content, Pulse is officially TikTok’s first monetization initiative that splits revenue with creators…sort of.

TikTok is now saying the split with creators will be 50/50

We say “sort of” because TikTok says that when Pulse begins rolling out to an invite-only group of U.S.-based advertisers in June, only creators with at least 100,000 followers will be eligible to earn revenue off ads run on their content. Those with fewer than 100,000 followers are apparently out of luck. (At least for now—TikTok does say that the 100K cutoff will be for the “initial stage” of Pulse monetization.)

A TikTok spokesperson has also confirmed to Tubefilter that the revenue split between the platform and creators will be 50/50. It’s not YouTube’s standard 55/45 in favor of creators, but it’s close.

“We’re focused on developing monetization solutions and available markets so that creators feel valued and rewarded on TikTok,” TikTok said in a company blog post about Pulse.

As you probably know, TikTok’s current monetization for creators happens entirely through its Creator Fund, which has serious drawbacks limiting creators’ earning potential. Now that the platform is testing a more YouTube-esque approach, it’s possible creators could start making some serious cash, if the split ends up being favorable.

TikTok will share more information about Pulse during its NewFronts presentation this afternoon. Sandie Hawkins, its general manager for North America global business solutions, and Sofia Hernandez, its global head of business marketing, will present to a live audience in New York City.