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How TikTok Makes Money?
You might wonder how TikTok makes money. You can make money on the free platform, but there are plenty of ways to use it for profit. Listed below are some methods you can use to earn on TikTok. These methods include Advertising, Branded Hashtag Challenges, and Branded Effects. Check out some of these tips and you’ll be on your way to earning on TikTok in no time!
Advertising
If you’ve ever wondered how TikTok makes money, you should know how branded hashtag challenges help them generate revenue. Brands can create challenges and invite other users to join, generating brand awareness and boosting brand engagement. TikTok also allows brands to create custom lenses that allow users to see a brand’s goods before they buy them. While the platform doesn’t divulge the rates for brand campaigns, it’s worth checking out how advertisers can make money through TikTok.
TikTok has an advertising program for creators, which means they can earn a cut of the ad revenue for the videos they post. Creators will receive a 50 percent cut of the revenue generated from their ads. TikTok will roll out this program later this summer in the US, and additional markets will follow in the fall. To sign up for the program, users must have at least 100,000 followers.
Branded Hashtag Challenges
One way to generate brand awareness is to run branded hashtag challenges. The challenge is easy to copy, unique, and directs potential buyers to the brand’s brand page. The TikTok team has been based in key hubs in Europe and will be able to work with brands, oversee audio licensing, and establish partnerships with TikTok Creators to make this process as simple as possible.
Another method of making money through branded hashtag challenges is to use influencers. Influencers have an audience of millions of people, so working with them can generate millions of views. The challenge can also be used as free marketing. By working with a brand, brands can leverage influencers’ reach and popularity to build a loyal following. But how do you get people to participate? The key is to make it easy to copy and leave enough room for creativity.
Branded Effects
Like Instagram and Snapchat, TikTok’s Branded Effects are a unique way for brands to promote their products. These videos feature branded stickers and filters, which can be combined with other TikTok ads to increase brand awareness and engage audiences. Branded Effects are especially effective at drumming up engagement and driving more user-generated content (UGC). One example of a brand’s use of Branded Effects was PUMA, which created a branded video to promote its Future Flash collection. The ad was viewed over 587.5 million times.
Branded Effects at TikTok can be accessed through the effect tray on the camera page or the effect anchor icon. Videos using your brand’s effect will appear in the For You feed. Branded Effects are able to display detailed information about the campaign and brand, as well as allow users to order video orders. To learn more about Branded Effects and how to use them, watch this video.
TikTok for Business
TikTok for Business lets brands buy ads for their videos. The app offers in-feed ads, brand takeovers, hashtag competitions, and branded effects. Branded Hashtag Challenges let brands create a hashtag, which users can then pay to have appear on their Discover feed. Branded Hashtag Challenges also allow brands to run ad campaigns based on the popularity of their hashtag.
Currently, TikTok makes money from the front end when users purchase TikTok Coins, and on the backend when content creators withdraw their funds. TikTok for Business will be released in June 2020. With this new product, brands will be able to promote their products on TikTok. These campaigns can involve brand takeovers and branded hashtag challenges, and they can earn money from both types of advertising. Famous brands that use the ad platform include Calvin Klein, Guess, NBA, and Chipotle.
The first step to creating successful campaigns on TikTok for Business is to create content that is interesting and entertaining to your audience. If you’re selling a physical product or a service, you should create videos about the benefits of using the product. Make sure to include your shop link in your bio, and consider using TikTok Creator Fund to promote your videos. You’ll also need a TikTok Pro account to access these programs.
