Short video platform TikTok is considering introducing well-planned content to provide secure advertising space for brands, according to the Financial Times.
The report cited three people familiar with the matter as saying that TikTok is exploring the launch of new streaming services, which may include carefully selected content from the growing army of so-called TikTok creators, or original videos created by professional publishers.
The move will allow TikTok to emulate its rival, American social app Snap, and charge more high-end brands for higher advertising costs than its existing short video sources.
TikTok's decision may ease the concerns of big brands and advertising agencies that their ads may be displayed at the same time as unpleasant or even illegal user-generated content on this nascent platform.
"If TikTok takes this step, I think it would be wise," said a partner at a large advertising company that understands TikTok's related plans.
Since 2015, Snap has established a "discovery" tab that showcases media group magazine-style editorial content such as Condรฉ Nast and The Wall Street Journal, as well as original video shows from companies such as NBC and CBS. Snap shares the advertising sales generated by this content with these partners under a revenue sharing agreement.
Brands can run video ads in the "discovery" section of Snap, but pay a higher price than ads elsewhere in the app. Snap said in its latest earnings report that it has more than 100 "discovery" channels with 10 million viewers per month and that the time spent watching the video has increased by 40% year-on-year.
At TikTok's move to replicate this model, executives have been actively marketing to US and European brands to monetize the app.
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