- TikTok is testing an ad-free subscription service plan.
- With this service, users will be able to have an ad-free experience on the platform.
- It was stated that the subscription service in question will be $ 4.99 per month.
Firstly As reported by Android Authority Code in the TikTok app indicates that TikTok may begin testing an ad-free subscription tier for users. The site reported that subscribers can have an ad-free experience on TikTok for $4.99. However, according to the findings, the subscription seems to only cover ads served by TikTok. The main goal of the paid plan is to remove personalized ads based on user actions. TikTok confirmed that it is testing this feature.
As can be seen from the screenshot, the platform plans to offer users 2 different options: Standard and Ad-free. In the first plan, users are offered an experience with advertising, and it is stated that user data will be shared with 3rd parties when device tracking is turned on. The second plan is offered for $ 4.99 and includes the information that users can have an ad-free TikTok experience.
The platform earns most of its revenue from advertisements. So far, it has proven resilient to stagnation in online ad spending.
A recent report from market research firm Cowen found TikTok adoption even among more cautious ad buyers, with 60% calling TikTok a “short-form video platform.” Standard Media Index stated that as of November, TikTok’s main initiative, ByteDance’s share of major agency expenditures on social media reached 11%. He reported that companies such as Pepsi, DoorDash, Amazon and Apple are among the top spenders.
The question is whether an ad-free service could significantly replace that revenue. Apparently, TikTok is willing to try its luck by following in the footsteps of social media rivals X and YouTube.
Compiled by: Nazlı Koyuncu
