The New Take On Influencers: TikTok Introduces Monetization Tools
Jul 07, 2021 ● 4 min read
With the growing popularity of advertising through social media, TikTok rolled out tools to help influencers connect with brands and users easier. And by doing so, it opened up a new content monetization channel.
Every advertiser has their own opinion about influencers. For some, it’s a great marketing opportunity. Others find it slightly annoying and wouldn’t implement influencers to their advertising product mix. With a market size of $9.7 billion in 2020, it’s expected to reach $13.8 billion by the end of 2021. Despite a conflicting opinion on how effective influencer marketing is, it’s not going anywhere.
Dedicated influencers shoutouts
According to screenshots shared by Fabian Ouwehand, the cofounder of TikTokers management company “Many”, some creators now can offer commissioned videos.
Initially, it was set for fans to purchase birthday wishes or pep talks videos using TikTok’s virtual currency. The Cameo-like feature can cost from as little as $5 to up to $2500 for a big-name influencer video. However, it’s unclear whether influencers need to have a certain number of followers or likes on their profiles to unlock the shoutout monetization feature.
TikTokers can craft a short introduction, presenting themselves and which videos they are open to making. By opening the shoutout feature, users will be presented with instructions:
- Request a video and pay your creator;
- Wait for up to 3 days for your creator to accept;
- Get a video in about a week after the creator submits it for a review;
- Check your direct messages to see the video.
Reportedly, platform users will have the ability to request the video to be shared on the creator’s profile for an extra fee if the influencer approves it. This feature will also open up the ability for marketers to automate the advertising process with TikTok’s influencers and order a personalized ad within minutes. The content, which features advertising, will be marked with an “Ad” tag.
TikTok added its virtual currency last year, enabling users to purchase virtual gifts that can be sent to creators during livestreams or tiktoks. The gift costs around five cents on average and TikTokers can withdraw it to their preferred payment method once $100 is collected in the profile balance. However, TikTok takes a cut of 50%, meaning that the creator earns only 2.5 cents per gift.
TikTok also introduced diamonds, which is the unique measure of the creator’s popularity. That way, the platform awards the best creators with diamonds worth 5 cents. Users cannot purchase the most valuable currency of the platform.
It’s another shot for TikTok to build a monetization system for the most popular influencers and rising stars. While TikTok’s users can reward their favorite creators with virtual gifts,
influencers can make a lot more money on Instagram and YouTube through partnerships and advertisements. Allowing creators to make paid shoutouts to the fans and brands will open up a new, serious monetization opportunity.
With the new features rolling out, the advertising on TikTok also evolves. It’s building a new, direct way for influencers and brands to get connected and work together. The platform itself is inviting businesses to create tiktoks, not ads.