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TikTok broadens its monetisation options for creators

Explore TikTok's enhanced monetisation strategies, including new subscription options for creators and upgraded support resources

TikTok has announced significant changes to its monetisation strategies in a strategic move to maintain its competitive edge. To retain and encourage its vast pool of creative talent, the platform is extending its subscription features, previously limited to live content creators. This move is part of TikTok’s significant effort to provide a variety of income streams for its creators, ensuring they have ample opportunities to monetise their content effectively.

Expanding revenue opportunities for all creators

The transition from “LIVE Subscription” to a more inclusive subscription model marks a significant shift in TikTok’s approach towards creator support. With this expansion, a broader range of content creators on the platform can now offer exclusive content and perks to their followers through subscription packages. This is a considerable step away from the traditional reliance on brand deals or in-app shopping streams for revenue. It reflects TikTok’s understanding of the diverse needs of its creator community and its commitment to providing them with direct revenue-generation methods.

This move is particularly significant in the context of Douyin, TikTok’s Chinese counterpart, which has seen phenomenal success with live-stream shopping. Douyin’s gross merchandise value soared to an impressive US$270 billion in 2023. In comparison, TikTok’s user spending was US$3.8 billion in the same year, highlighting a significant gap and untapped potential within the platform. By introducing these new subscription options, TikTok is not just diversifying revenue streams for its creators but also attempting to replicate some of Douyin’s success in monetisation.

Enhancing the creator experience and sustainability

The new “Subscription” offering, initially available on an invite-only basis, will soon open up for a wider group of eligible creators. This clearly indicates TikTok’s resolve to offer its creators more autonomy and flexibility in how they engage with and earn from their audience. Simultaneously, TikTok is rebranding its Creativity Program into the “Creator Rewards Program”. This program incentivises original content, focusing on originality, play duration, search value, and audience engagement. As TikTok users increasingly prefer longer-form content, the Creator Rewards Program is expected to motivate creators to produce more engaging and comprehensive videos.

Resource enhancement for creators

Parallel to these monetisation initiatives, TikTok is also upgrading its Creator Portal within the “Creator Academy”. This platform is set to become a comprehensive resource centre, offering various materials, including courses, articles, videos, and insights. These resources are tailored to assist creators in maximising their creative output and engagement on the platform. Announced at the “Future Formats” creator summit in Los Angeles, these updates represent TikTok’s ongoing commitment to support its creator community in an increasingly competitive digital landscape.

In a world where generative AI and other technological advancements pose new challenges, TikTok’s efforts to nurture and reward creative talent are more crucial than ever. By broadening monetisation avenues and bolstering support systems, TikTok is not just reacting to the evolving market dynamics but is proactively shaping a nurturing and lucrative ecosystem for its creators.

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