As first reported by Android Authority, TikTok has begun testing an ad-free subscription tier for users. It’s reported that for $4.99 a month, subscribers could get an ad-free experience on TikTok. Currently, this is only happening in the EU, but TikTok representatives have confirmed that it will begin testing in the United States shortly.
A recent report from market research firm Cowen found a TikTok embrace even amid more cautious ad buyers, with 60% naming TikTok as their preferred short-form video venue. Standard Media Index reported that, as of November, TikTok parent startup ByteDance’s share of big agency spending on social media reached 11%, with companies including Pepsi, DoorDash, Amazon, and Apple among the top spenders.
This is a surprising move from TikTok, as they earn most of their revenue from ad spending, but they are following Meta’s testing of an ad-free format. We’d imagine that if they do go through with this that it would still be months and possibly even years away from happening. Until they are sure that they can replace that ad revenue with a subscription-based format, business will continue as normal for TikTok users.