3rd December 2021
POV: TikTok Creator Next
Background:
TikTok is rolling out Creator Next, a new hub for all its monetisation tools and it is updating some of its existing features. It is also launching new business features.
Details and Implications:
TikTok is introducing a hub for all its monetisation tools, introducing updates for its existing creator tools and expanding its tipping features in a move designed to further attract creators to its platform.
The new hub for monetisation, called Creator Next, will now house all the tools that creators can access in order to make money from their content on the platform including: Creator Fund; Creator Marketplace; Live Gifts; Video Gifts and Tips. Creators must meet minimum follower requirements (which vary depending on region and function) and have had 1,000 video views within the past 30 days to use the new functionality. This additions are part of TikTok’s efforts to keep creators on its platform and stop them from moving to other platforms as the competition for the best creators hots up across video platforms such as YouTube, Twitch and Instagram amongst others.
Last year TikTok gave creators a way to make money beyond brand deals when it launched its $200 million Creator Fund. This has now expanded and there are multiple ways for creators to earn money from the platform. For example, there is a Creator Marketplace, where creators/brands can find the right partnerships and which is now being expanded so it is available to creators with only 10,000 followers (down from 100,000). This massively increases the pool of creators for brands to collaborate with on the platform.
TikTok is also expanding its Live Gifts feature, which lets viewers gift diamonds (a virtual currency redeemable for cash) during livestreams, by adding Video Gifts into the mix. This will allow users to donate diamonds during standard videos on the platform too. Creators must have 1,000 followers for Live Gifts and 100,000 followers for Video Gifts.
On top of these updates to existing features, it is widely expanding its Tips feature that was tested in October. This feature will now be available to all 18+ creators with 100,000 followers or more. TikTok has announced that creators will receive 100% of the tip with the payments processed through Stripe.
These features will allow creators to diversify the way they make money on the platform, which keeps them on TikTok creating content and expanding their audiences, which gives more choice and opportunity for brands to partner with them and reach their audience.
TikTok is also slowly introducing new features for businesses on the platform. There is a now a new way to register businesses which will enable brands to list their business categories on their profiles. This will provide another way for TikTok to gather data about businesses and will help in its next eCommerce push by better differentiating between different types of businesses and showcasing them to the relevant users, making eCommerce campaigns more efficient.
Summary:
TikTok is continuously expanding its monetisation for creators and its advertising and commerce features for brands and businesses. This symbiotic relationship is at the heart of the power of the platform, so expect more innovation in both areas as direct commerce increases and platforms become huge engines of growth in the age of transformation.