TikTok wants more advertising dollars and has a new plan to get them

TikTok has a problem with ads. The company unveiled a new plan on Tuesday to resolve the issue.

Home videos that work exactly like commercials have garnered hundreds of millions of in-app views over the years, and in many cases, TikTok hasn’t earned a penny.

In June, singer Walker Hayes posted a video of him dancing with his daughter to “Fancy Like,” his country-pop song that highlights the name of the Applebee restaurant chain. The song inspired the duplication of the video and spawned an Applebee TV campaign featuring the song.

Last year Nathan Apodaca, a TikTok user who publishes as 420doggface208, went viral with a track that made him skate while drinking Cranberry Raspberry Ocean Spray juice with strains of Fleetwood Mac’s “Dreams”. 80 million views and Ocean Spray showed its gratitude by sending Apodaca a red pickup truck filled with Ocean Spray jugs.

On Tuesday, TikTok executives announced new initiatives to persuade companies and advertising agencies to buy in-app space at their first TikTok World event, a virtual presentation geared towards the marketing industry. The company said it was putting together an automated system to act as a sort of matchmaker, bringing together advertisers and content creators, giving TikTok a better chance of reaching other social media companies that generate higher ad revenue.

TikTok officially opened it to paid advertising over a year ago, but many companies were leery. TikTok is the leading social media platform behind Instagram, YouTube, Google, and Facebook, though trust is growing, according to a survey of more than 900 marketers conducted by research firm Kantar.

According to Kantar, which surveyed more than 14,500 people in 23 regions, the percentage of people exposed to ads on TikTok has nearly doubled, from 19% last year to 37%.

The platform is considered the funniest ad, but more people complained that they find too many in the app. In seeking to attract more paid advertising, the company seems to be aware of the danger of disrupting the flow of social media.

“We don’t want to interrupt the experiment,” Chandlee said. “We want users to see an ad and say, ‘That was great,’ not ‘I watched it because it’s in my feed.’