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How Does TikTok Make Money?
You may have heard about TikTok ads, but how do they work? The TikTok creator fund pays you two to four cents per thousand views, and depending on how popular your videos are, it can reach $200 or $400. But, what does this money really mean for you? Here’s a closer look. What’s the difference between sponsored content and in-feed video ads? And how can you get started with sponsored content?
TikTok’s self-serve ad model
For advertisers, TikTok’s self-serving ad platform makes the entire process a breeze. Advertisers pay TikTok when they trigger certain actions, like purchasing an app, submitting a form, or subscribing to a newsletter. It’s also possible to target a specific demographic or geographic area. This may interest you : Im in the Ghetto – Defining the Ghetto Sound on TikTok. It has been noted that ad dollars from SMBs will likely be diverted to TikTok, as many of those advertisers prefer to target smaller audiences. The self-serve ad platform is designed to attract smaller advertisers, but the minimum ad group and campaign budgets are $50 and $500 respectively. And while small businesses aren’t necessarily large enough to be successful on TikTok, they can take advantage of a $300 ad credit for
The self-serve ad model is aimed at SMEs and is built around the idea of ad placement in the content feed. Ads are billed for each conversion event, such as a click or a like, and TikTok automatically sets billing events based on the optimization goals. TikTok’s self-serve ad platform also offers advertisers more control over their budget, with adjustable bids and placement options. For small-to-medium-sized businesses, the most popular format is the in-feed ad, which runs within the content feed for 60 seconds, with sound. TikTok recently introduced profile-like pages, business accounts, and other features for SMBs and other advertisers.
In-feed video ads
In-feed video ads on TikTok are the primary revenue generator for brands, but there are other ways to reach the platform’s audience. TopView videos, which take up 60 seconds, are a popular way to capture user attention. This may interest you : Is TikTok Toxic?. TopView ads run at the top of the For You feed, and are designed to engage viewers by offering a rich experience. Brands can use this revenue stream to create awareness for their products and services, and they can also use TikTok’s powerful ad format to sell their wares.
In-feed video ads on TikTok are similar to organic videos on the platform. In-feed video ads are 9 to 15 seconds long, and viewers can interact with them like they would with an organic video. And the video format, allowing multiple call-to-actions, is also similar to the current trends on the platform. These advertisements are typically linked to a website, an app, or a shop. They must also take up a full screen, which means the viewer must be able to see the ad.
Subscriptions
The company is also expanding its subscriber program, making it possible for viewers to pay to become a subscriber to a specific streamer. Subscriptions provide perks for subscribers, such as custom emotes, badges, and subscriber-only chat. Read also : How to Clear the Cache of TikTok on Your iPhone or iPad. While TikTok’s subscription program isn’t without controversy, some users have hailed it as a welcome step toward more stable monthly income.
Subscribers can now add branded content and lenses to their videos to receive tips. The videos can also be accompanied by virtual gifts and augmented reality filters. The subscription program is a lucrative way for TikTok to monetize content and keep users engaged. Subscribers also have the option to buy and send virtual gifts to their favorite creators. But how does TikTok make money through subscriptions?
During the two-year period between February 2020 and 2021, the platform generated $110 million in revenue. According to Sensor Tower, 79% of its revenue came from Douyin in China, while only 8% was from the United States. The company’s founder, Zhang Yiming, has a net worth of $35.7 billion as of April 23. However, despite the success of TikTok and its new subscription model, many creators have complained that the companies pay them too little.
Sponsored content
TikTok users should be wary of advertising content that they find deceptive. Those who post sponsored content should disclose their relationship with the brands and avoid posting anything that contradicts their regular content. The platform is not legally responsible for branded content that isn’t disclosed. TikTok also uses a combination of technology to identify ads and reviews reports about possible violations. If a user reports content that appears to be deceptive, the platform will take action.
Regardless of the platform, in order to make money with sponsored content on TikTok, a user must have a large following and a loyal fan base. Brands are interested in sponsored content because it is less filtered, enjoys a more genuine engagement between creator and followers. Similarly, TikTok creators need a large audience on other social networks, or have strong fan bases on other channels in order to get sponsorship.
