Who is cashing in on TikTok’s growing popularity in the Middle East?

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Updated 06 January 2023
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Who is cashing in on TikTok’s growing popularity in the Middle East?

  • Arab News takes a look at whether the platform’s investment in content creators is paying off and who ultimately benefits the most from it
  • Several high-profile creators have criticized TikTok over its Creator Fund; one major complaint is that the pool of money remained the same as the number of creators increased

DUBAI: With more than 100,000 influencers active on TikTok globally in 2020, according to Statista, the short-form video app has increasingly positioned itself as a potentially lucrative social media platform for content creators.

Creators often describe the app’s editing capabilities and binge-worthy content style as especially appealing, luring them away from other popular platforms such as Instagram and Facebook.

Along with this shift in platforms, there has also been a move away from the use of the word “influencer,” to be replaced by “creator.” The former conjures up images of lavish holidays, luxury fashion and a type of aspirational lifestyle that can leave followers feeling inadequate about their own lives.

“The term ‘influencer’ has become outdated, with many social media stars preferring ‘creator,’” Harry Hugo, the co-founder of The Goat Agency told The Drum. “Why? Top creators aren’t just posting aesthetic content; they do so much more.”

In other words, for a creator to be successful it is imperative that they post authentic and helpful content and do not simply aim to “influence” an audience.

Xzit Thamer, a creator in Saudi Arabia, focuses on gaming and mostly posts content related to Grand Theft Auto. He quit his day job in 2020 to focus on creating content for TikTok.

“I never knew back then I would reach 7 million followers and be one of the top gaming content creators in the Middle East,” he told Arab News.

TikTok is certainly having its moment in the sun but this is more than just a passing fad, experts believe. The platform’s popularity appears to be sustainable, according to Natasha Hatherall-Shawe, founder and CEO of marketing agency TishTash.

“The simplicity of TikTok’s mission,” which is to capture the attention of audiences with short videos, has “superseded other platforms” such as Meta’s Facebook and Instagram, which are now trying to play catch-up by introducing features such as Reels, she told Arab News.

According to Thamer, who has been creating content for nine years: “TikTok is the best platform for content creators.”

With top creators capable of building such large audiences, TikTok understandably invests in them through programs such as the Creator Fund, which directly rewards selected creators. In the Middle East and North Africa region, the platform also launched its Creator Hub program in the UAE and Egypt in September 2022 to help identify talented creators and connect them with mentors and experts who can support their development and nurture their skills.

But several high-profile creators have criticized TikTok over its Creator Fund. One of the main complaints is that the pool of available money has remained much the same even while the number of creators continued to increase.

Popular creator Hank Green, who has more than 7 million followers on TikTok, called out the platform in a video uploaded to YouTube. In it, he acknowledged that TikTok is “tremendously powerful” and “extremely well designed” but accused it of “dramatically underpaying creators.”

TikTok isn’t the first or the only platform to offer direct financial rewards to certain creators. Several social media platforms, including YouTube and Instagram, offer special initiatives for creators but some experts say this is not always a good thing and question their value.

“YouTube is notoriously stingy with the revenue it shares with creators and TikTok is not much different,” said Hatherall-Shawe.

While “creator programs benefit the platform at a micro level,” she added, “it is definitely hard to feel justified in the revenue received as a creator directly from the platform.”

This is why it is important for creators to consider alternative monetization opportunities on the back of their TikTok fame, said Hatherall-Shawe.

One such opportunity is brand collaboration. The cost to a brand of recruiting a creator to collaborate on a campaign, or even a single post, on TikTok can vary widely. Although the social media and influencer industries are strictly licensed in Gulf countries, it is still something of a “wild west” situation in which the cost to a brand of a single post from a popular creator can be upwards of $4,000, said Hatherall-Shawe.

By way of an example, Mohammed Ghadour, who spends four hours every day creating TikTok videos, earns between $1,000 and $3,000 a month, according to a report by the BBC.

Aside from the possibility of brand collaborations, Hatherall-Shawe said, TikTok also provides tools designed to help creators make more money directly from their own content. Last year, for example, the platform introduced a “tip jar” feature through which fans can send cash tips to creators.

It also unveiled “video gifts,” a mechanism for viewers to send creators virtual gifts and coins. These can be redeemed for TikTok’s digital currency, “diamonds,” which in turn can be converted to cash. And, of course, popular creators can also use the fame they achieve on TikTok to sell their own merchandise or business-related offerings to followers.

“TikTok as a search engine for retail is hugely powerful,” said Hatherall-Shawe. “For many consumers, it is the first port of call for being influenced by fashion, beauty, sports, food and household items that are then purchased via direct channels publicized within the content.”

In May last year, the platform announced a new feature, TikTok Pulse, for sharing advertising revenue with leading creators. To qualify, a creator must have content in the top 4 percent of best-performing videos, have at least 100,000 followers, be over the age of 18, and have posted at least five videos in the past 30 days. Creators meeting all of these criteria receive 50 percent of the revenue from adverts appearing alongside their content.

Taking all of this into account, it is hard to see any downside for creators to prioritizing TikTok over other platforms, particularly for “short-form video content, especially in the fun, food, family and entertainment space — the type of content that is best received in the Arab world at the moment,” Hatherall-Shawe said.

She also pointed out that social media platforms, though extremely well-funded, are not always profitable, and that quantity usually takes priority over quality.

“These platforms are built on a model of user acquisition at all costs and keeping viewers’ eyeballs within their native apps as much as possible — it’s a volume game,” she added.

When leading creators gain enough of a following on TikTok to collaborate directly with brands, they can potentially earn thousands of dollars for a single post, none of which goes to the platform that helped them raise their profile. But that does not mean it is losing out on the deal.

“While a creator will outperform the platform financially as an individual, as a whole business, TikTok is certainly in the lead here,” said Hatherall-Shawe.


OpenAI strikes deal to bring Reddit content to ChatGPT

Updated 21 sec ago
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OpenAI strikes deal to bring Reddit content to ChatGPT

  • Deal underscores Reddit’s attempt to diversify beyond its advertising business
  • Content will be used to train AI models
LONDON: Reddit has partnered with OpenAI to bring its content to popular chatbot ChatGPT, the companies said on Thursday, sending the social media platform’s shares up 12 percent in extended trade.
The deal underscores Reddit’s attempt to diversify beyond its advertising business, and follows its recent partnership with Alphabet to make its content available for training Google’s AI models.
ChatGPT and other OpenAI products will use Reddit’s application programming interface, the means by which Reddit distributes its content, following the new partnership.
OpenAI will also become a Reddit advertising partner, the company said.
Ahead of Reddit’s March IPO, Reuters reported that Reddit struck its deal with Alphabet, worth about $60 million per year.
Investors view selling its data to train AI models as a key source of revenue beyond Reddit’s advertising business.
The social media company earlier this month reported strong revenue growth and improving profitability in the first earnings since its market debut, indicating that its Google deal and its push to grow its ads business were paying off.
Reddit’s shares rose 10.5 percent to $62.31 after the bell. As of Wednesday’s close, the stock is up nearly 12 percent since its market debut in March.

NGOs warn Elon Musk of ‘collective punishment’ if Starlink in Sudan is shut down

Updated 16 May 2024
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NGOs warn Elon Musk of ‘collective punishment’ if Starlink in Sudan is shut down

  • People and organizations rely on ‘unofficial’ Starlink connection for lifeline services
  • Coalition of 94 humanitarian, human rights groups call for warring factions to repair damaged communication infrastructure

LONDON: Starlink’s chief Elon Musk has been urged not to shut down the satellite internet service in Sudan, as doing so could “collectively punish” millions of Sudanese.

In an appeal to the American billionaire, nearly 100 humanitarian, civil society, human rights organizations and members of the #KeepItOn coalition have highlighted the critical role Starlink plays as a lifeline for on-the-ground organizations operating in the war-torn African country. They warn that interrupting the service could have fatal consequences.

“Any shutdown of telecommunication services is a violation of human rights and may be considered to be a collective punishment that will not only isolate individuals from their support networks but also exacerbate the already dire economic situation facing millions,” said the coalition, which includes Save the Children, Islamic Relief Worldwide and Action Against Hunger, among others.

The statement added: “The potential shutdown of Starlink would have a disproportionate impact on civilians and the aid organisations who are trying to reach them.”

Sudan has been grappling with a widespread telecommunications blackout for several months, severely limiting emergency and humanitarian services and access to basic transactions such as cash transfers from abroad.

Starlink, which can operate across borders thanks to its satellite service, announced earlier this month that it would cease its services in Sudan by restricting roaming in jurisdictions where it is not licensed.

If confirmed, this decision risks provoking a permanent nationwide telecommunications shutdown, similar to the one in February 2024 that left almost 30 million Sudanese without access to the internet or telephone calls for more than a month.

The situation is further exacerbated by the damage and destruction of communication infrastructure, targeted by both the Rapid Support Forces and the Sudanese military.

The coalition, which relies on expensive and scarce satellite internet in areas where formal telecommunications are not functioning, has also urged the warring factions to repair the infrastructure.

SpaceX’s Starlink has been under pressure to maintain its connection since conflict broke out in Sudan in April 2023.

In August, a hacking group called Anonymous Sudan took X offline in more than a dozen countries to pressure Elon Musk into formally opening Starlink in Sudan.

In recent months, the company has been at the center of a public debate over its role in connecting war-torn areas worldwide.

Earlier in May, Bloomberg reported that SpaceX was close to finalizing a deal with the Yemeni government to provide satellite internet to the country in what experts described as a “victory” over the Houthi rebels.

In September 2023, several media outlets reported that Elon Musk denied a Ukrainian request to extend Starlink’s coverage to Crimea during a surprise attack.

Although this was later clarified as an erroneous claim that Musk “turned off” Starlink coverage in Crimea, it raised concerns about the service’s role during conflicts.


Dentsu opens sports practice in MENA with Riyadh HQ

Updated 16 May 2024
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Dentsu opens sports practice in MENA with Riyadh HQ

DUBAI: International advertising group Dentsu has announced the launch of its dedicated sports practice, dentsu Sports International, in the Middle East and North Africa region.

The new practice, which focuses on sports marketing and analytics services, will be headquartered in Riyadh, Saudi Arabia, with additional offices in the UAE.

To provide end-to-end service to clients, the group brings together three dentsu businesses: dentsu Sports International Commercial, MKTG Sports + Entertainment and dentsu Sports Analytics.

Charlie Wylie, managing director for Europe, Middle East and Africa at dentsu Sports International, said: “dentsu Sports International will serve as a strategic sports and entertainment arm of dentsu in MENA, offering comprehensive solutions tailored to the needs of brands and rights holders.”

The company has appointed Olaf Borutz as vice president of commercial development, reporting to dentsu Sports International’s global chief commercial officer, Echo Li.

Borutz’s previous role as head of sports and events at law firm Al Tamimi & Company saw him advise clients on sports and events-related commercial matters, including government bodies, rights holders, agencies and players of the Saudi Pro League and Qatar Stars League. 

“The appetite for sports marketing in the Kingdom is at an all-time high, with Saudi’s ambitions and investment in this space only expected to grow,” said Tarek Daouk, CEO, dentsu MENA.

A significant 62 percent of Saudi sports fans say that sport plays a bigger role in their lives than  before, according to a new study conducted by dentsu Sports International.

The study also found that fans spend more time and money than their international counterparts on live events in the Kingdom, with Saudi fans attending an average of six events in person a year, more than the UK average of two events per year.

Saudi Arabia’s significant youth population is passionate about sports, with 68 percent of 18–24-year-old Saudis saying they find attending sports events more rewarding than other entertainment events.

The study also revealed that these younger consumers are the most likely to purchase premium tickets, spending 31 percent more a ticket than older fans.

Daouk said: “It’s an exciting time for sports in the region and we are thrilled to launch dentsu’s bespoke sports and entertainment offering.”


Tunisia remands journalists arrested over critical comments

Updated 15 May 2024
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Tunisia remands journalists arrested over critical comments

  • Broadcaster Borhen Bssais and political commentator Mourad Zeghidi were arrested Saturday under a decree criminalizing ‘spreading false information’ among other charges, spokesman Mohamed Zitouna said

TUNIS: A Tunisian court on Wednesday ordered two journalists to be held in remand until the completion of investigations into critical comments, a court spokesman said.

Broadcaster Borhen Bssais and political commentator Mourad Zeghidi were arrested Saturday under a decree criminalizing “spreading false information” among other charges, spokesman Mohamed Zitouna said.

Zeghidi is being investigated over social media statements last February and a post in support of Mohamed Boughalleb, another journalist and critic of President Kais Saied who has been detained separately.

Bssais was arrested on accusations of “having harmed President Kais Saied through radio broadcasts and statements” online between 2019 and 2022, according to his lawyer Nizar Ayed.

Their trial is set to begin on May 22, according to their lawyers.

Both media figures are prosecuted under a law ratified by Saied in September 2022.

The law punishes people with up to five years in prison for the use of social media to “produce, spread (or) disseminate ... false news” and “slander others, tarnish their reputation, financially or morally harm them.”

Journalists and opposition figures have said it has been used to stifle dissent.

Since the decree came into force, more than 60 journalists, lawyers and opposition figures have been prosecuted under it, according to the National Union of Tunisian Journalists.

The same night Bssais and Zeghidi were taken into police custody, masked police raided the Tunisian bar association and arrested lawyer Sonia Dahmani, also on the same law.

On Monday, another lawyer was forcibly arrested at the association’s headquarters.

The president of the bar, Hatem Meziou, on Tuesday called for an end to “the abuse of power” and “violence” targeting the lawyers.

The European Union also expressed concern over a string of arrests of civil society figures in Tunisia — the latest sign of a tightening clampdown on freedoms under Saied.

Nongovernmental organizations have decried a rollback of freedoms in Tunisia since Saied began ruling by decree after a sweeping power grab in 2021.


‘Blockout’ trend targets celebrities over Gaza silence

Updated 15 May 2024
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‘Blockout’ trend targets celebrities over Gaza silence

  • Selena Gomez, Zendaya and Kim Kardashian are among the celebrities who have lost hundreds of thousands of followers
  • Boycott campaign gained traction following Met Gala event last week in New York

LONDON: A new trend threatening to boycott celebrities over their refusal to speak out about the Gaza conflict is gaining momentum on social media.

Known as “Blockout 2024,” the movement has surged in popularity following the Met Gala last week.

As part of a solidarity campaign, social media users are calling for the blocking of accounts of celebrities who have remained silent on the humanitarian crisis in Gaza.

High-profile figures such as Taylor Swift, Justin Bieber, and Drake are among the hundreds of celebrities facing this “digital guillotine.”

A full list is circulating on social media, leading to a significant loss of followers on Instagram and other platforms.

Actress and singer Selena Gomez reportedly lost 1 million followers on Instagram and 100,000 on X, according to US-based social media analytics site Sonic Blue.

Fellow actress and singer Zendaya, reality TV star Kim Kardashian, and her sister Kylie Jenner have also seen hundreds of thousands of followers drop.

Pro-Palestinian activists have been pressuring celebrities for months to show more support for Gaza civilians. This growing discontent reached a tipping point last week when the Met Gala’s glitz and glamour coincided with Israel’s announcement of a military offensive in Rafah.

@ladyfromtheoutside #greenscreen #greenscreenvideo #digitine #digitalguillotine #haleyybaylee ♬ original sound - Meagan

The movement was sparked by a TikTok video from influencer Haley Kalil at the Met Gala on May 7, where she lip-synced to the phrase “Let them eat cake.”

This phrase, attributed to Queen Marie Antoinette, drew parallels to the French Revolution, symbolizing indifference to the suffering of the impoverished.

“It’s time for the people to conduct what I want to call a ‘digital guillotine.’ A ‘digitine,’ if you will,” said TikTok creator @ladyfromtheoutside, who kicked off the movement with her viral video.

“It’s time to block all the celebrities, influencers and wealthy socialites who are not using their resources to help those in dire need. We gave them their platforms. It’s time to take it back, take our views away, our likes, our comments, our money.”

According to Gaza authorities, at least 35,000 people, mostly women and children, have been killed in the Palestinian territory during the seven-month war, which has been widely condemned as failing to comply with international humanitarian law.