TikTok's new partner program fits in with its efforts to capitalize on a growing user base with new features for brands to advertise, and for creators to monetize
These moves are of course meant to allow TikTok itself to drum up revenue from its users — which in the US 37.5 million at the end of 2019, per eMarketer — but also to help attract and retain the driving force behind its popularity, its creators. There's fierce competition for creators, and monetization is a key path to retaining them: IGTV, for instance, has also been its game when it comes to creator incentives, and of course YouTube already offers an established path to monetization.
Whether or not this feature appeals to creators will depend on how TikTok implements it — and for now, those plans remain murky. As of now, creators can already work directly with brands to create ads with Shop Now buttons. For example, Digiday noted that Levi's ran a successful campaign on TikTok that featured a Shop Now button, and also featured TikTok stars.
And while details about revenue-sharing for preexisting, in-feed "Shop Now" buttons haven't been disclosed, the newer iteration will have an 80/20 revenue split, with TikTok taking the lion's share. Until now, TikTok creators have been working on more Instagram-like terms, wherein they collaborate directly with a brand, but this move suggests that TikTok could view YouTube as a more appealing model.
On the other hand, it could benefit smaller creators who lack the resources to broker their own partnerships. Ultimately, how creators receive this feature will come down to whether TikTok gives them a choice to adopt tools like this — which then become just another way for them to monetize — or if it imposes that adoption on them.Business Insider Intelligence analyzes the media and marketing industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more.
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