Creo Networks Inc.

Instagram and TikTok pay creators approximately 1-3% of their total ad revenue. These amounts include bonuses, payments through funds, and shares from ad formats like In-Stream Ads. The majority of ad revenue remains with the platforms. These estimates are based on market data regarding social platforms' revenues and their monetization programs for creators: 1. Instagram (Meta): In 2023, Meta’s ad revenue reached approximately $117 billion, with the majority coming from feeds and Stories, where creators do not receive any ad revenue share. The In-Stream Ads program offers creators 55% of ad revenue from video formats (Reels, IGTV), but this covers only a small portion of content. According to reports and analyst estimates, creator payouts account for only 2-3% of the company’s total ad revenue. 2. TikTok: TikTok uses a Creator Fund rather than directly sharing ad revenue. With a $1 billion budget for payouts, creators earn $0.02–$0.04 per 1,000 views, which is very low compared to the company’s multibillion-dollar ad revenue. This results in total payouts amounting to just 1-2% of TikTok’s ad revenue. Thus, both platforms pay creators only a small portion of their vast ad revenue, estimated to be within the range of 1-3%. With Creo, creators earn significantly more than on platforms like Instagram and TikTok, thanks to our advertising model that allocates 80% of ad profit to them. Our algorithm operates through a competitive auction where advertisers bid for ad placements. For example, if an advertiser pays $0.10 per view, we deduct 10% for server maintenance and SMS costs, leaving us with $0.09 in profit. From this amount, 80% ($0.072) is distributed to content creators. If a post on Creo receives 10 million views, the earnings could total approximately $11,000. This amount is shared among all creators whose content was viewed prior to the ad display. For instance, if a user sees 5 posts before the ad, each creator would earn $0.0144 for their respective content. In contrast, creators on Instagram receive only 1-3% of the ad revenue. With an average CPM of $10, this would amount to around $1,000 for 10 million views. On TikTok, payouts from the Creator Fund are significantly lower, averaging $0.02 to $0.04 per 1,000 views, resulting in total earnings of about $200 to $400 for the same 10 million views. In summary, creators on Creo can earn 10 times more than on Instagram and 27 to 55 times more than on TikTok, making it a lucrative platform for content creators.