TikTok is launching an ad program that will let marketers buy ad spots on the top four percent of videos and allow select creators to receive a cut of the revenue, the company said on Wednesday at its NewFronts presentation in New York.
Creators with at least 100,000 followers on TikTok will be allowed to participate in the ad program, called TikTok Pulse, but it’s not immediately clear what the revenue share will look like. Marketers, meanwhile, will be able to purchase ads next to top videos across 12 categories including beauty and fashion, cooking and gaming.
The top four percent of videos will be determined based on brand suitability, viewer engagement, video views and “creator engagement signals,” executives said at TikTok’s NewFronts presentation. The ad spots can be purchased via TikTok’s ad management platform and advertisers will receive post-campaign audience reporting, though executives did not share specifics on what analytics would be shared.
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Though details are scarce, the ad revenue share feature would be the first for TikTok, despite being the launching pad for a number of top creators and trends. Currently, creators are able to receive some payments from TikTok via the platform’s $1 billion creator fund, but they have not received other opportunities to receive a cut from the ads run on users’ For You pages.
“TikTok Pulse brings your brand together with the hottest trends and the most relevant, highly engaged communities,” Sandie Hawkins, who oversees TikTok’s business marketing and advertising in North America, said to a crowd gathered at an events space near Hell’s Kitchen.
“The future of brands connecting with people is really reaching them where they are hyper engaged and with the content they’re passionate about,” added Jiayi “Ray” Cao, TikTok’s managing director and global head of product strategy and operations.
