Tiktok sets up $2bn fund to poach creators from rivals
Tiktok has today revealed it will be putting more than $2bn aside over the next three years to pay creators on its platform, in a bid to attract more influencers from rivals Instagram and Youtube.
Around $300m of that fund will go to creators in the UK and Europe, while $1bn will be set aside just for the US.
In the coming weeks creators on the short-form video app will be able to submit an application to Tiktok to be considered for the fund.
The cash will be available alongside Tiktok’s Creator Marketplace, which helps connect influencers and companies to carry out paid advertising campaigns on the platform.
“Part of why Tiktok has thrived here is because as a nation, we are creators — the UK’s creative impact is almost without parallel in terms of its variety and influence and our platform reflects this,” said Tiktok’s European general manager Rich Waterworth.
“The UK is one of our biggest operations in the world, home to hundreds of staff, critical functions and senior leaders… The rich cultural diversity here is hard to rival and we’re excited about how the Creator Fund can help to further nurture the potential of a new generation of creative talent.”
Owned by Chinese tech giant Bytedance, Tiktok has skyrocketed in popularity within the last year, boosted by the pandemic as Brits sought creative outlets to help deal with staying at home.
However it has faced major stumbling blocks in a number of countries as a result of its heritage. It was banned in India earlier this month as ties between the two nations worsened, and could be hit with similar restrictions in the US and Japan.
Tiktok does not have a scheme in place to monetise user content, enabling rival platforms Instagram and Youtube to stay ahead of the game by attracting the biggest names.
Instagram is also trying to capitalise on Tiktok’s success, launching a competitor feature called Reels which is due to be rolled out next month.