TikTok, the popular Social Media app is reportedly planning to introduce paid subscription to its users. According to reports, the social media giant is working on a plan to charge its users $4.99 (Ksh.740) per month, to enjoy an Ads-free experience.t
TikTok was launched in 2014 by a Chinese company, ByteDance, as a short video creation and sharing app called Douyin. The app was retooled to accommodate the global audience and the relaunched a year later.
Few years into the market, the Chinese App has gained huge popularity, with over 1 billion users globally.
According to the 2022 financial reports, the company generated $9.4 billion from ads, a number that is expected to quadruple by 2026.
In a bid to increase their income, the company is testing the new plan in one market outside the United States. If the test succeeds, the feature will be rolled out to a wider user base.
TikTok has been relying on ad revenues as the main source of its income. The new proposal therefore seeks to diversify the social media giant’s revenue streams to mirror other platforms such as Twitter which offer premium subscriptions.
Reliable source has disclosed that it is expected that the paid TikTok experience will come with extra features including access to monetization.
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As pet PYMNTS, the platform is introducing a new tool called Attribution Analytics within TikTok Ads Manager.
The tool aims to help advertisers to gauge the effectiveness of their advertising campaigns on the platform.
According to PYMTS, the new feature will also offer users better insights into user behavior on the platform.
