Instagram will now be letting creators and influencers profit and earn money from their videos on IGTV. By next week, Instagram will be showing ads before all the clips play on its IGTV. The company also plans on sharing 55% of the revenue with all of its creators which is exactly the same as how much YouTube compensates influencers.
Instagram is letting influencers make money on IGTV; Will test out digital badges as well
According to a Bloomberg report, "The company will also start testing a way for users to sell digital badges in their live videos. If viewers buy a badge, their names will stand out among fans' comments, designating them as supporters. The video host will receive all the money directly for the first few months of the test, until Instagram starts taking a share of the revenue later this year or in 2021, Instagram said."
Creators and influencers with a huge fan base usually make their money from various deals and sponsorships with different brands by posting on Instagram about their products and services or even events. However, all of those deals and partnerships have faded ever since the lockdown began making it hard for many influencers to create content.
However, this entire movement is not just about the creators. It's also for Facebook and Instagram to make a profit off a surge in views as more people stay in their homes and use Instagram. In fact, the company has skyrocketed and reached 70% on live video viewership from the month of February to March.
How the monetization works
Ads for the videos will start after users click a video preview which lasts for 15 seconds in their main Instagram feed. They will then be taken to IGTV to watch the entire video. This gives creators an incentive to build more videos to attract users to visit their IGTV page.
This could make Instagram a better and bigger contributor to Facebook's revenue overall. Back in 2019, Instagram's adverting accounted for about a quarter of Facebook's revenue estimated to be about $20 billion.
"Instagram, founded almost 10 years ago, long debated whether to become a direct source of income for its popular users. But now, with much of the world sheltering in place, it has become even more obvious that some users are building businesses from their Instagram content -- without the company's help. Creators have turned to the app to recreate experiences they might have otherwise hosted in person, some accepting tips via Venmo, or relying on outside services like Patreon to make money from their fan bases." Bloomberg added.