4 months ago
“YouTubers in the Google Preferred program have a significantly higher CPM than general creators on YouTube,” said Krishna Subramanian, co-founder of influencer marketing platform Captiv8. “It's $10 CPM and above if you're in the Preferred program, and $0.30 CPM if you're not. It's a little bit of a black box in terms of how you really get into that preferred program.”
But despite the hype over TikTok, the platform has a long way to go before catching up with YouTube's user base. China's Bytedance, which owns TikTok, said the platform had 500 million monthly active users(MAUs) in June 2018. We estimate that YouTube had 1.6 billion MAUs worldwide last year, amounting to 66.3% of all digital video viewers.
TikTok, on the other hand, doesn’t have a formal ad business yet, and its creators can't monetize their videos with ads. The platform has begun quietly testing ad units, and select brands, like Chipotle, have partnered with TikTok influencers on campaigns. But, according to a February 2019 survey conducted by Sprout Social, just 4% of US social media marketers were incorporating TikTok into their marketing strategy, vs. 49% who used YouTube.
“Even though TikTok has embraced creators more than other social platforms, it’s certainly not as built out yet, even in terms of measurement,” said Kamiu Lee, CEO of influencer platform Activate. “As an influencer on TikTok, you don't have the ability to drive a link outside the app. Things like that inhibit the ability for creators to find brand opportunities.”
TikTok is taking initiative to make the platform ad friendly. It has brought brand marketers and creators together to discuss the collaborative possibilities for short-form video content and is positioning itself as the place to reach Gen Z worldwide. Yet ultimately, the longevity of any up-and-coming platform doesn’t only depend on user growth and demographic reach, but advertiser participation.
“Influencers care about two things: making money and growing their audiences,” Captiv8’s Subramanian said. “If they can't do either, they leave. Vine was a perfect example. Even though [content creators on Vine] could grow their audiences, there were no monetization opportunities. The platform didn't listen, and everyone packed their bags and left.”
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