Challenges of creating the TikTok Creator Fund - with Reagan Fry
The creation of the TikTok Creator Fund was a rapid process, aimed at addressing the unique challenge of revenue sharing for short-form videos. While ad revenues are typically shared based on easily attributable factors like cost per click or impressions, the nature of short-form videos on platforms like TikTok makes it difficult to determine who should receive the ad share for a collection of videos.
On platforms like YouTube, where pre-roll or mid-roll ads are common, attribution is relatively straightforward. One video and one creator can be easily linked to the ad revenue. However, TikTok presents a different challenge, where multiple videos are loaded simultaneously, and determining the appropriate attribution becomes more complex.
Reagan Fry, in a video, discusses two options for addressing this challenge. The first option is to wait and develop a comprehensive system for attribution, which may not be suitable for their current business needs. The second option is to design a hybrid or hacky revenue sharing model, which ultimately led to the creation of the Creator Fund.
The Creator Fund serves as a statement of support for TikTok creators, especially amidst geopolitical controversies surrounding the platform. By implementing the fund, TikTok intends to show its commitment to supporting and investing in its community of creators.
TikTok Creator Fund, ad revenues, short-form video, attribution, revenue sharing, YouTube, ad share, ad revenue, Creator Fund, TikTok creators, geopolitical controversies, support, investment
Q: What is the challenge faced in sharing ad revenues for short-form videos on TikTok? A: The challenge lies in determining the appropriate attribution for a collection of videos, as opposed to one-to-one attribution in platforms like YouTube.
Q: Why is it difficult to attribute ad share to creators of multiple short-form videos on TikTok? A: TikTok's simultaneous loading of multiple videos makes it challenging to establish clear attribution for ad revenue distribution.
Q: What options were considered to address this challenge? A: The two options considered were developing a comprehensive attribution system or creating a hybrid/hacky revenue sharing model.
Q: Why was the Creator Fund created? A: The Creator Fund was introduced as a way to support and invest in TikTok creators, particularly during times of geopolitical controversy surrounding the platform.