Social media sensation TikTok is testing a new monthly subscription that would get rid of adverts on the video-sharing site. The Chinese firm ByteDance (which owns TikTok) is trying out the service in an English-speaking market outside the USA but has declined to comment on exactly where. The subscription is being tested at $4.99 which is approximately 741.02 Kenyan shillings. TikTok also emphasized that the “small-scale test” does not guarantee an imminent product launch. As of now TikTok only displays personalized adverts for all users over the age of 18.
This announcement comes as a clarification in the wake of a report by Android Authority on Monday – October 2, 2023-, referencing a code that indicated TikTok was offering a monthly subscription free of ads. The code outlined the terms and conditions, seeking user agreement on data usage and the immediate initiation of the ad-free subscription, with VAT included in the price. The subscription appears to only cover ads served by TikTok — not influencer marketing one-offs or campaigns. So it won’t do much to combat the raft of TikTok users failing to disclose their brand sponsorships.
TikTok makes most of its money from ads, and so far, it’s proven resilient to the broader slowdown in online ad spending. A recent report from market research found a TikTok embrace even amid more cautious ad buyers, with 60% naming TikTok as their preferred short-form video venue. As of November 2022, according to Standard Media Index, it was reported that TikTok parent startup ByteDance’s share of big agency spending on social media reached to 11%, with companies including Pepsi, DoorDash, Amazon and Apple among the top spenders. What a lot of people are now wondering is whether an ad-free tier can meaningfully replace any of that revenue. Evidently, TikTok’s willing to give it a go — following in the footsteps of social media rivals X (the platform formerly known as Twitter), meta and YouTube.