Social media users could soon start enjoying TikTok without encountering advertisements.
The social media application is at an advanced stage of introducing an ad-free monthly subscription plan that will let users enjoy an ad-free experience for a Ksh740.52 ($4.99) fee.
According to TechCrunch, TikTok which was created in 2014 by y a Chinese company, ByteDance, will test the new subscription feature outside the US.
The subscription appears to only cover ads served by TikTok — not influencer marketing one-offs or campaigns.
Reports indicate that it is expected that the paid TikTok will come with extra features including access to monetization.
To calculate ad revenue, reports further indicate that TikTok will introduce a new tool called Attribution Analytics within TikTok.
The tool will be used by various advertisers to access how different campaigns perform on the platform.
In 2022, TikTok generated $9.4 billion from ads, a number that is expected to quadruple by 2026.
The launch of the subscription feature is touted to help the social media campaign raise more revenue in the coming days.
TikTok, which has more than 1 billion monthly users, largely relies on advertising revenue.
The subscription plan is one of the ways TikTok is exploring to make the app more profitable.
The company is working aggressively to diversify where its money comes from.
TikTok Shop, the platform’s in-app marketplace, has been moved to the main navigation bar for some users, and the company has been pushing ads and coupons, hoping to entice them to make a purchase.
The company is also exploring ways of monetizing live streams in a bid to diversify its revenue sources.
