TikTok Launches TikTok Creative Challenge, A New Way for Creators and Brands To Collaborate

TikTok has launched a new creator monetization initiative in TikTok Creative Challenge. The in-app feature allows creators to monetize by participating in brand challenges focused on downloads, in-app purchases, or sales. This tool aims to reduce friction between creators and brands for performance-based programs while bringing paid media into the mix.

How It Works

Creators can browse through a list of challenges and review the brief. They can then submit videos to be used as ads instead of posting on their own profiles. When approved, videos are automatically synced to the brand's Ads Manager to run as ads. Creators receive payment based on the ad's performance, with higher-performing ads earning creators more.

What It Means for Creators

Compared to traditional brand collaborations, creators have greater creative freedom through a flexible brief. While payments are not guaranteed, the chance to earn is higher than in other performance-based programs like affiliate, where creators typically rely solely on their organic performance to earn. With videos being used in paid media campaigns that are optimized for specific objectives and include call-to-action buttons, creators are more likely to drive the results for which they are being rewarded.

There are also safeguards for creators. For example, brands are not allowed to use the videos outside the challenge, such as repurposing them on their organic accounts or using them as ads on other platforms.

Despite this, it may not appeal to creators, mainly because it requires creators to do upfront work without guaranteed payment. However, for smaller creators (including "UGC" creators) who might not have consistent brand deal flow and creators who are open to affiliate-type programs, it can be a new revenue stream.

What It Means for Brands

On the brand side, it's a big win. Brands can generate performance-focused video assets (10-30 videos) at scale within a short timeframe of about 7 days. Videos automatically sync to their Ads Manager, streamlining the process for amplification without the need to gather ad codes or manually upload the videos. As brands increasingly prioritize lower-funnel KPIs for their creator programs, this can help them reach their desired goals more efficiently.

Reflecting Emerging Trends

The program reflects several emerging trends, including the understanding that creator monetization is not one-size-fits-all, the convergence of influencer marketing and affiliate marketing, the use of challenge-style programs to democratize monetization for creators, and the growing significance of paid media in influencer marketing.

TikTok's new tool is another step in the evolution of creator monetization, as brands and creators continue to find new ways to work together and create value for each other. The program also highlights the importance of performance-based programs and the use of paid media to drive results.