Inside China’s Meme Economy: How Netizens Monetize Humor on Douyin

In the digital heart of China's internet culture, a quiet revolution is unfolding—one meme at a time. On Douyin, the Chinese version of TikTok, humor isn’t just for laughs; it’s big business. From sarcastic skits to absurd animations, netizens are turning viral jokes into cold, hard cash. Welcome to the meme economy: where laughter has a price tag and creativity pays the bills.

Douyin boasts over 700 million monthly active users, making it a goldmine for content creators. But what sets China’s meme scene apart is how ordinary users—students, office workers, even retirees—are monetizing their wit. Unlike Western platforms where only top influencers profit, Douyin’s algorithm rewards virality, not follower count. A single funny clip can rocket to fame overnight.

Take “Brother Watch,” a meme character known for his exaggerated facial expressions and deadpan commentary on daily life. Created by a 24-year-old from Chengdu, the account grew to 2.3 million followers in six months. More importantly, it generated over ¥180,000 (about $25,000) through live-stream gifts, brand deals, and merchandise sales.

But how do memes actually make money? Here’s a breakdown of the main revenue streams:

The secret sauce? Relatability. Successful memes tap into shared frustrations—overwork, dating struggles, urban loneliness. One viral trend, 'Lie Flat Frog,' features a lazy cartoon frog avoiding responsibilities, resonating with China’s disillusioned youth. The character spawned T-shirts, phone cases, and even a short animated series.

Of course, not every joke becomes a jackpot. Only about 5% of meme creators achieve consistent monetization. Many face challenges like copyright issues or rapid audience fatigue. Yet, for those who strike the right balance of humor and hustle, the payoff is real.

In essence, Douyin’s meme economy proves that in today’s China, laughter isn’t just the best medicine—it’s a viable career path.