TikTok Offers A Contextual Advertising Solution & Creator Revenue Share With New TikTok Pulse Program
Source: TikTok
TikTok introduced a new ad product called TikTok Pulse. Using the new contextual advertising solution, brands can place ads on the For You feed among the top four percent of videos, based on a combination of brand suitability, view engagement, video views, and creator engagement signals. In addition, brands can choose which type of video they want to appear with their ads from 12 different categories, such as beauty, fashion, cooking, pets, and gaming.
To ensure videos are brand-safe, TikTok will use inventory filters. Additional post-campaign measurement tools such as third-party brand sustainability and viewability verification are also available. These provide advertisers with the transparency to analyze and understand the impact of their campaigns.
There is also a creator revenue share tie-in, making it a first for TikTok. Creators of the videos that have ads placed next to them can earn money through a 50/50 revenue share program. In order to be eligible, creators must have at least 100,000 followers.
Pulse ads are currently available to only a select group of advertisers, who can purchase them through TikTok Ads Manager with a fixed CPM.
Through Pulse ads, brands can tie themselves to cultural trends and moments happening across the platform. By having ads appear with trending videos, brands can be discovered by new audiences and connect with existing communities, all while seamlessly integrating into the TikTok experience. Further, brands also get some assurance that their ads will be seen by a large, relevant, and engaged audience, which is important if their KPIs are based on achieving specific performance metrics.
The revenue share with creators component is also important, especially considering the backlash TikTok has faced regarding its Creator Fund and low payments. By splitting advertising revenue with creators, who are ultimately responsible for keeping users engaged on the app, TikTok rewards creators in a way that directly correlates with the value they bring.
Despite the popularity of short-form video content, one of the biggest challenges for social media platforms is monetization, both for the platforms themselves and for content creators. TikTok looks to have found itself a solution with Pulse. However, it’s not alone as Meta and Snapchat have also recently started testing ad products with revenue shares for their short-form video experiences. Meta is testing Overlay Ads for Facebook Reels while Snapchat is testing mid-roll ads for creators who are part of Snap Stars. YouTube has also said it will test ads for YouTube Shorts, but has not disclosed whether creators will receive a cut, similar to what it does with the YouTube Partner Program for long-form videos.
