Build a revenue strategy for TikTok across ads, commerce and creators

Quick Overview

A product strategy question asking how TikTok should make money. It tests mapping what viewers, creators, advertisers and sellers would pay for, comparing and prioritizing revenue options against the cost to user experience, and defining success metrics with guardrails on engagement and creator health.

Build a revenue strategy for TikTok across ads, commerce and creators

Company: Snapchat

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

How would you have TikTok make money? Propose a monetization strategy and say what you would prioritize. ```hint Count the sides The app has viewers, creators, advertisers and sellers. Ask which of them would pay, for what, and what each new revenue stream would cost the people who keep the feed worth watching. ``` ### Clarifying Questions - Should I treat TikTok as it is today, with ads, LIVE gifts and TikTok Shop already running, or as a large app that has not started monetizing? - Is the goal near-term revenue growth, or durable revenue that does not erode time spent and creator supply? - Should I focus on one market such as the US, or on TikTok worldwide outside China, where ByteDance runs the separate Douyin app? ### What a Strong Answer Covers - A clear goal, and the constraint that monetization must not erode engagement or the supply of creators - The four sides of the platform (viewers, creators, advertisers, sellers) and what each would realistically pay for - A broad set of revenue options, prioritized with explicit criteria and ending in a recommendation and a sequence - Success metrics with guardrails on user experience and creator health - Risks such as ad fatigue, trust in commerce, creator take rates and regulation ### Follow-up Questions - Would you launch an ad-free paid tier? Who would buy it, and what would it cost the ads business? - Shop sales grow quickly, but users start skipping shoppable videos. What would you do? - Which of these moves would worry a competitor such as Snapchat most, and why?

Overview: A product strategy question asking how TikTok should make money. It tests mapping what viewers, creators, advertisers and sellers would pay for, comparing and prioritizing revenue options against the cost to user experience, and defining success metrics with guardrails on engagement and creator health.

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Snapchat
Jan 13, 2025
mediumProduct ManagerOtherProduct Design & Strategy
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How would you have TikTok make money? Propose a monetization strategy and say what you would prioritize.

Clarifying Questions Guidance

  • Should I treat TikTok as it is today, with ads, LIVE gifts and TikTok Shop already running, or as a large app that has not started monetizing?
  • Is the goal near-term revenue growth, or durable revenue that does not erode time spent and creator supply?
  • Should I focus on one market such as the US, or on TikTok worldwide outside China, where ByteDance runs the separate Douyin app?

What a Strong Answer Covers Guidance

  • A clear goal, and the constraint that monetization must not erode engagement or the supply of creators
  • The four sides of the platform (viewers, creators, advertisers, sellers) and what each would realistically pay for
  • A broad set of revenue options, prioritized with explicit criteria and ending in a recommendation and a sequence
  • Success metrics with guardrails on user experience and creator health
  • Risks such as ad fatigue, trust in commerce, creator take rates and regulation

Follow-up Questions Guidance

  • Would you launch an ad-free paid tier? Who would buy it, and what would it cost the ads business?
  • Shop sales grow quickly, but users start skipping shoppable videos. What would you do?
  • Which of these moves would worry a competitor such as Snapchat most, and why?