TikTok announced an ad revenue-sharing program with the social media platform’s most prominent creators on Wednesday, bringing it closer to a model already used by competitors.
The short-video format app has grown in popularity in recent years, with over a billion active users worldwide, but it has been chastised for not allowing content creators to effectively monetize their work.
Companies can place ads next to user content in specific categories, such as health, fashion, cooking, gaming, and others, under the new TikTok Pulse program, and creators will receive a cut.
“We will begin exploring our first advertising revenue share program with creators, public figures, and media publishers,” said the company, which is a subsidiary of Chinese tech firm ByteDance.
“We’re focusing on developing monetization solutions in existing markets so that TikTok creators feel valued and rewarded.”
Only accounts with a minimum of 100,000 subscribers will be eligible for the promotion.
Sandie Hawkins, the company’s North America General Manager, told tech website The Verge that Pulse will launch in the United States in June, and that approved creators will receive a 50 percent cut of ad revenue.
According to the industry publication Business of Apps, TikTok will generate an estimated 4.6 billion dollars in revenue by 2021.
This figure is more than double the previous year’s revenue, but it is roughly on par with competitor Snapchat, which has approximately 300 million daily users, according to Snapchat data.
Other major video-focused social networks, such as YouTube, Instagram, and Snapchat, have already implemented revenue-sharing systems.