TikTok may soon pilot an ad-free subscription service on its app.
Code within the social platform suggests that subscribers may soon be able to access content with no interruptions from adverts for $4.99 a month.
Screenshots of TikTok asking users if they’d like to upgrade to an ad-free experience were shared by Android Authority.
Why we care. If sign-ups for TikTok’s ad-free subscription tier prove to be popular, then this could have a significant impact on reach for the platform’s advertisers, which will ultimately lower the product’s value.
What ads will be excluded? Influencer marketing one-offs or campaigns will still appear on the paid-for version of the app – it’s only ads that are served by TikTok that will be excluded. This means the change is unlikely to help combat the issue of TikTok influencers not disclosing brand partnerships.
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Why now? TikTok generates most of its profits from ad revenue – which came to $9.4 billion in 2022. That number is expected to quadruple by 2026. However, in a bid to mitigate financial risk, the platform’s executives are exploring the diversification of revenue streams, with the potential introduction of paid subscriptions not coming as a surprise.
Deep dive. Check out TikTok’s newsroom for more information on the platform’s latest developments.
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