TikTok To Launch New Creator Fund Program After Experiencing Decline In User Growth

TikTok has been making headlines ever since the US stepped up plans to scrutinize the app amid concerns about data privacy sharing with officials in China.

Since then, the company has been flustered with possible threats of a complete ban in the Western world, especially the US market.

Amid all of that controversy comes news that the app is now experiencing a period of decline in terms of its user growth. At the same time, it’s no surprise that the platform has been struggling on the front related to creators' share and revenue generation.

And all of this could result in some major implications for the app’s future in such target markets. Hence, desperate times are now calling out for some desperate measures. We’re talking about an idea that has been put forward to help enhance revenue generation from creators with a new funding program.

Remember, most content on the platform is of short duration and that makes it extremely challenging and hard to monetize via ad placement. Remember, you can’t simply add advertisements at the start of the middle of such content and expect it to do well because the content is so short.

So the latest on this front is that TikTok wants to make the new creator funding program a success, giving a lot of opportunities for monetization for those it considers top stars. In the same way, it’s setting out programs for pay walling content produced that’s longer in duration.

As per reports from The Information, this ordeal can provide creators with bigger payments as compared to the previous initiative that was similar to this. That one resulted in incremental revenue for all creators but the response wasn’t great. They weren’t getting much out of it and that resulted in them searching for better opportunities to make money on alternative platforms.

YouTube was seen launching a new program that allowed monetization on its Shorts recently and that would result in funding from all ads placed inside Shorts as a whole. They opted to allocate them to the app’s creators depending on the number of views observed. For now, the project is fairly new so it would be taking some time to produce results. Whatever the case may be, one thing is for sure. It may well go above and beyond the usual ways of TikTok as YouTube also has its own longer content creator funding up for grabs in addition to this.

Recent data taken from the likes of data.ai saw the app’s growth coming to a standstill despite it being the most popular social media app across the board around the world. Moreover, we could be seeing it face a lot more challenges in terms of making sure its top creators are at the top of the list while pushing to enhance payments as well as user exposure.

At the moment, TikTok is in a very strong position. The app has nearly 1.5 billion users and has turned into a major source of entertainment for all sorts of individuals. But the concerns remain as we speak and that entails a further ban of the app seen on government-owned devices across other states.

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