Will TikTok’s Paid Service Replace its Advertising Revenue?

KOMPAS.com – Social media TikTok seems to be following X (Twitter) and Instagram to implement paid applications.

This comes after TikTok confirmed it was testing a paid service, but only in one English-speaking market outside the United States.

By paying 4.99 US dollars or around Rp. 78,000 per month, users can enjoy ad-free TikTok services, quoted from TechCrunch (2/10/2023).

However, this paid version of TikTok may only include ad-free. It is known that TikTok has generated most of its income from advertising.

Also read: TikTok Shop Still Selling, Ministry of Trade Reveals TikTok Promise

With this advertising revenue, TikTok has proven to be able to survive the slowdown in online advertising spending.

Therefore, a number of parties question whether the paid TikTok policy will be able to replace this income in a meaningful way.

Apart from that, the trial of this ad-free service was also carried out when TikTok worked aggressively to diversify its revenue sources, quoted from The Verge (2/10/2023).

TikTok Shop, for example, has been moved to the main navigation bar for some users. The hope is that users will be more interested in making purchases.

Also read: TikTok is annoying, hasn’t complied with the government’s ban on closing TikTok shops

Follow in the footsteps of Twitter and Instagram

Elon Musk has previously provided paid or subscription account services via social media X (formerly Twitter).

Through the Twitter Blue account, users can enjoy a number of premium services, including blue ticks, by paying IDR 120,000 per month or IDR 1.25 million per year.

Elon Musk has even said before that he wants to offer a higher-priced subscription tier that doesn’t feature any ads on X.

Although it hasn’t happened yet, the company revealed that X Premium customers get around 50 percent fewer ads.

Also read: Reveals the Contents of the Meeting with TikTok CEO, Luhut: Don’t Trade on Social Media

Instagram and Facebook

This X step was then followed by Instagram and Facebook.

For subscription services, users are required to pay 11.99 US dollars or around Rp. 182.00 per month for web users.

Meanwhile, Android and iOS users are charged 14.99 US dollars or around IDR 227,000 per month.

These paid blue tick services will offer increased visibility and reach in areas such as search and recommendations.

Users of this paid service will also get exclusive stickers for Instagram Stories.

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2023-10-03 14:15:00
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