The social media app Tik Tok has certainly taken the world by storm since its launch in 2016. With over two billion downloads worldwide, Tik Tok has become a cultural phenomenon and the ultimate destination for short-form video content.
While the app may have started as a platform for amateur lip-synching and dancing videos, it has since evolved into much more. Tik Tok has now become a hub for user-generated content that is as varied as it is entertaining. From comedy skits to cooking tutorials, political commentary to virtual travel vlogs, you name it, and Tik Tok has it.
But the question that arises is how does Tik Tok make money?
Like any other social media app, Tik Tok monetizes its platform through advertising. However, it is the app’s unique approach to advertising that has set it apart from the rest of the pack. Unlike traditional digital advertising methods that rely solely on sponsored posts, Tik Tok has taken a more creative route.
First, the app offers businesses and brands the option to sponsor branded hashtags. Branded hashtags are essentially a way for companies to promote their products or services on the platform. They work by creating a hashtag that users can then use in their videos, giving the brand exposure to a broader audience.
Second, Tik Tok has a creator fund that rewards content creators for their viral content. The fund pays creators based on their video’s engagement rate, and eligibility is based on factors such as consistency, popularity, and compliance with the app’s community guidelines. In other words, if a creator’s video receives a high level of engagement, they can be financially rewarded for it.
Third, Tik Tok has launched a new feature called the “commerce platform” that allows its users to sell products directly from the app. The feature allows users to add links to their videos that lead to their own e-commerce sites, where fans can purchase their products. This feature is useful for influencers and small-batch creators looking for an additional revenue stream.
Finally, Tik Tok has launched a self-service ad platform that enables businesses and brands to run their own ads on the app. The ad platform allows them to target their audience based on demographics, location, language, interests, and behaviors, among other factors.
In conclusion, Tik Tok has broken down the financial success of social media apps and found new ways to monetize user-generated content. Through the use of innovative advertising methods, a creator fund, a commerce platform, and a self-service ad platform, Tik Tok has established itself as a dynamic and profitable force in the social media world.