In the ever-evolving landscape of social media platforms, creators are constantly seeking the best avenues to monetize their content and turn their passion into a sustainable income stream. Two platforms that have been at the forefront of this discussion are YouTube and TikTok. Both offer unique opportunities for creators, different monetization options, and the ability to reach wide audiences. In this blog post, we'll look at the differences between YouTube and TikTok monetization and explore how creators can benefit from diversifying their content strategy on multiple platforms. We also provide a bit of insight on the potential TikTok ban!
Let’s talk about TikTok first…
TikTok has taken the social media world by storm, captivating millions of users with its short-form video content and addictive features. It has quickly become a breeding ground for overnight sensations, offering creators the chance to gain immense popularity in a short amount of time. TikTok has undoubtedly revolutionised the way we consume and create content.
What is TikTok Monetization?
TikTok monetization is when creators earn revenue from TikTok for the videos they post. TikTok started the Creativity Program (previously Creator Fund) with a commitment to pay $300 million to eligible creators using the platform. This feature is available exclusively to creators who meet the following credentials:
- Based in the US, Germany, UK, France, Italy or Spain
- At least 18 years of age
- Minimum of 10,000 followers
- Minimum of 100,000 views in the past 30 days
- Account is in good standing with TikTok’s community guidelines.
Here are a few pros of TikTok Monetization:
TikTok’s algorithm and user behavior are favored towards creators expanding their audience reach making it easier for them to grow. Earning revenue on views is a huge win for creators who may not be posting sponsored content. Here are some other pros to take note of:
- High engagement: TikTok has a highly engaged audience, with users spending an average of 52 minutes per day on the app.
- Easy to gain followers: With TikTok's algorithm, it is easier to gain followers and reach a large audience (even as a small or new creator) compared to other platforms.
- Learning ground: TikTok's algorithm also makes it easier for content to be spread and learned, increasing the potential for sharing ideas and knowledge in a short amount of time.
Limitations of TikTok Monetization
Despite its widespread popularity, TikTok's monetization comes with its own set of limitations and uncertainties. The monetization aspect to TikTok is still relatively new and can be considered a low payout. TikTok is said to be paying creators around 2-4 cents per 1,000 views. This means that if a video gets 1 million views a creator could be making $20-$40 — which is arguably very low. Even then, the payout isn’t available to all videos. The Creativity Program has placed exclusions on content such as duets, live streams and stitches. While the payout can be great for some creators it is also restricted to creators in specific countries. If you’re not a creator in the US, UK, Germany, France, Spain, or Italy, you are not eligible to apply for the TikTok Creator Fund or Creativity Program. TikTokers in other countries will have to resort to alternative ways to capitalize on their TikTok content, following, and engagement. Though many uneligible creators have spoken out about their frustration, TikTok claims that they are working on a way to make it available. But then again, there will still be uncertainty around the payout.
In more recent news TikTok’s place in various countries (such as the United States) has been up for debate with politicians. The uncertainty of the long-term viability of the app can raise doubts for creators, with many considering backup plans and exploring alternative platforms to ensure their financial security.
We’ve included a tentative timeline on the TikTok ban below!
Now, let’s get into YouTube…
YouTube provides a more established and robust monetization platform for creators, offering multiple avenues for earning revenue. Unlike TikTok's focus on short-form content, YouTube caters to creators producing both short-form and long-form content giving more opportunity for ad placements and in turn increasing the earning potential. YouTube’s AdSense is also relative to content niches, meaning YouTube can pay you more depending on what your content is designed to appeal. We expand on this below!
What is YouTube Monetization?
YouTube gives creators a cut of revenue from ads placed on their videos. To be eligible for YouTube monetization, you must have at least 1,000 subscribers and 4,000 hours of watch time within the past 12 months on long-form content.
YouTube’s AdSense is based on many different factors such as the type of content the channel produces as well as how many placements go on the video. Advertisers bid based on audience relevance, meaning niche content often commands higher ad rates. Longer videos (increased watch time) generate more ad impressions, further boosting revenue potential. Metrics like Revenue Per Mille (RPM — how much money you’ve earned per 1,000 views), average $1 to $5 across niches. RPM offers insights into earnings, with specialized content sometimes exceeding $10. Understanding these dynamics enables creators to strategically tailor content, optimize video length, and attract advertisers, ultimately maximizing revenue. You can read more about CPM and RPM in our blog post here.
As you can see, there is already a stark difference in the amount of money a creator can potentially make through YouTube monetization versus TikTok monetization. Not to mention, YouTube Monetization is available for creators in 106 different countries, including the US, UK, Canada, Australia, India, Germany, Brazil, and more. You can find the full list of YouTube’s monetized markets here.
Here are a few other pros of YouTube Monetization:
One of the standout advantages of YouTube for established creators is its stability and longevity. YouTube has solidified its position as a cornerstone of the online video industry. With billions of users and a proven track record of success, YouTube offers creators the opportunity to build a loyal audience and create a sustainable income stream that can support them for years to come. Creators can utilize YouTube as a powerful tool to amplify their impact and secure their financial future in the digital landscape. Here’s a quick look at more pros:
- Large audience: YouTube has over 2 billion monthly active users, making it a great platform to reach a large audience.
- High earning potential: With a large audience and multiple monetization options, YouTube has a high earning potential for content creators.
How Would YouTube Monetization Work for an Established Creator?
For creators that already have a substantial following, leveraging YouTube monetization offers an opportunity to expand their earnings and audience reach.
Incorporating YouTube would allow creators to tap into a huge user base as well as incorporate longer-form content that has the potential for greater monetization.
YouTube's established monetization features would provide big creators with multiple streams of income to boost their earnings overall. By strategically leveraging YouTube's platform and its robust monetization options, big creators can create a more sustainable revenue model, while simultaneously expanding their audience and solidifying their presence in the digital space.
I’m a TikTok Creator… should I move over to YouTube?
TikTok is an amazing place for a creator so we wouldn’t say to give it up. But, diving into YouTube could help you build a deeper relationship with your audience while also tapping into a new market. As a bonus, the stability of YouTube AdSense would give your career added security, especially as we wait to see how TikTok stabilizes itself.
In light of the uncertainties surrounding TikTok, it's become clear that creators should aim to diversify their revenue streams and explore alternative platforms. TikTok offers exciting opportunities for creators, especially those looking to gain rapid exposure and build their brand. YouTube offers long-term financial gain with diverse monetization and commitment to continuously support creators. Both platforms definitely have their benefits. As the landscape continues to evolve, we would suggest that creators weigh their options carefully and choose the platforms that offer the best opportunities for growth and success.
FAQ
If I’m an established TikToker, can I get funding from Breeze?
Unfortunately, we do not fund creators based off their TikTok accounts. If you have an established YouTube channel, reach out to us or use our Funding Calculator here so you can see an estimate of the cash you can receive!
What other ways can I get cash to build my channel if I’ve already moved over from TikTok to YouTube?
Creator Funding! Here at Breeze, we offer funding to creators with established monetized YouTube channels based on the AdSense revenue their channel generates. If you’re now a big creator on YouTube who needs funding for anything like equipment, renting a studio space, legal fees, or any other purpose, Breeze is here to support!
I still use TikTok! What are some tips on how I can use my TikTok to grow my YouTube channel?
We actually dropped a blog post about this a couple of weeks ago! You can read about it here.
What would be the benefit of getting funding from Breeze?
Simply put, Breeze offers straightforward funding options with no dilution, long-term partnerships, or permanent royalties. With our funding, creators retain full creative control of their channel, with complete transparency at every step of the process. Our funding is designed to help creators achieve their goals and grow their channels without any hidden fees or obligations.
When can I apply for funding from Breeze?
At any point, you are welcome to visit our site, click ‘Get Started’ and fill out our Calculator Form. Breeze is designed for established creators with a minimum of 2 years worth of AdSense revenue. If you have any questions about how funding works for your channel we’d be happy to discuss!
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Here is the estimated timeline for the worst-case scenario regarding the potential TikTok ban:
- March 13: The House passes the bill that could lead to the ban of TikTok. Senate Majority Leader Chuck Schumer indicates he’s in no rush in bringing the bill to the Senate floor.
- Mid to Late April: The Senate's session will be interrupted for several weeks, with various critical matters on their agenda, such as reviewing the President's proposed budget and discussing foreign relations. It's unlikely the bill would reach the Senate floor before mid to late April, at the earliest.
- Late April to Early May: To proceed to President Biden's desk, the bill needs 60 "yes" votes from the 100 Senate members. Given the Senate's typically slow deliberation pace, reaching this stage could take considerable time.
- Mid May: Assuming swift passage through the Senate and subsequent signing by President Biden, ByteDance would then have 165 to 180 days (sources vary) to sell TikTok if they choose to continue its operation under a US entity.
- January 2025: In the event ByteDance fails to sell TikTok within the specified timeframe, a ban in the US would be enforced as the 180-day period concludes, potentially occurring around January 2025 in the worst-case scenario.
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