Yesterday, Instagram has announced creator monetization via IGTV ads. Instagram allows posting 1-minute videos. However, this limit does not exist on IGTV (Instagram Television) videos. This feature was launched in the summer of 2018.
Through IGTV ads, Instagram will share revenue with its creators. This is the first time when the users will be able to monetize their IGTV videos. The popular social media platform also plans to introduce ‘paid badges’ during the ‘live session’. This way the fans can support their favourite creators by getting a badge from 99 cents to $4.99. All the revenue generated with badges will go in the pockets of the creators. The creators can tag products in the live session for people to buy directly from their videos.
Jim Squires, Vice President Business and Media at Instagram said, “Creators are such an important part of Instagram, so we continue to look at ways of allowing creators to turn their passions into livings on the platform.”
From next week, when users click to watch IGTV videos from the preview in their feeds a 15 -the second ad will play before it. Initially, this feature will be available to a small group like Sephora, Puma and Ikea for brand participation and to Avani Gregg and Salice Rose for creator monetization and will receive 55% of the ad revenue on their videos. During this period Instagram plans to test other features like ‘skippable ads’.
“We wanted to start with a small group of creators and marketers so we can set the right tone and we can advise more closely on doing mobile-first immersive creative in this environment, which is very similar to where we started years ago introducing advertising on the platform,” says Squire.
“IGTV has given me a place to show my fans more of my creativity and personality, which has helped grow my brand. Being able to earn money from the content I’m already creating gives me more motivation to share more of myself with my followers,” says Avani Gregg who shares makeup tutorials and has over 20 million followers. Salice Rose with 10.9 million followers said, “I’m going to get paid for something that I already love to do? That is a blessing.”
Justin Osofsky, Chief Operating Officer at Instagram said, “Creators already put an incredible amount of effort into their content, and it’s crucial that they can make money from that content to fuel their work in the future.”
From the following year, Instagram will pose a great threat to TikTok and YouTube.
