Instagram is home to over 500, 000 influencers. In the process of building their various brands and businesses, they have helped Instagram build up theirs. As such they're an asset to the platform and must be retained by at least providing a means of income.
Unlike competing video platforms like YouTube and Twitch, Instagram has taken a moderately distant role in terms of monetization. This will change with the introduction of several new features announced this Wednesday; ads on IGTV videos and digital badges that fans can purchase through Instagram Live, which has seen a 70 percent increase in views since the widespread stay-at-home orders (from February to March).
The IGTV ads will start appearing next week from brands including Sephora, Ikea, Puma, and other test partners. The revenue will be split, with at least 55 percent of the ad revenue going to the content creator - comparable to YouTube.
Fans will also be given a chance to sponsor their favorite creators and businesses by paying for digital badges. These cost 99 cents to $5 and place a small heart-shaped icon next to their name. Instagram won’t collect a percentage on the initial test of badges, but will once they roll out widely.
Brand deals will also be easier to find with the expansion of Instagram’s Brand Collab Manager.
Instagram is testing both features with a small group of creators (and advertisers, for the IGTV ads), before rolling them out more widely.
Instagram says its new features are meant to help people like Charlee Atkins, a New York-based fitness trainer the company highlighted as part of its announcement. Atkins has doubled her followers in two months since New York went on lockdown. Which she believes is due to her daily fitness classes on Instagram Live for her 120,000-plus followers.
With badges, fans of Atkins' workouts will be able to support her directly within the app. Viewers who purchase a badge will show one, two, or three heart icons next to their usernames, depending on how much they paid, which Instagram says will make their comments stand out in the live feed.
With the introduction of the aforementioned features, creators will be given more incentive to put out content - expect more content in your Instagram feed!
Sources: WIRED, New York Times.
The IGTV ads will start appearing next week from brands including Sephora, Ikea, Puma, and other test partners. The revenue will be split, with at least 55 percent of the ad revenue going to the content creator - comparable to YouTube.
Fans will also be given a chance to sponsor their favorite creators and businesses by paying for digital badges. These cost 99 cents to $5 and place a small heart-shaped icon next to their name. Instagram won’t collect a percentage on the initial test of badges, but will once they roll out widely.
Brand deals will also be easier to find with the expansion of Instagram’s Brand Collab Manager.
Instagram is testing both features with a small group of creators (and advertisers, for the IGTV ads), before rolling them out more widely.
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| Courtesy of Facebook |
With badges, fans of Atkins' workouts will be able to support her directly within the app. Viewers who purchase a badge will show one, two, or three heart icons next to their usernames, depending on how much they paid, which Instagram says will make their comments stand out in the live feed.
With the introduction of the aforementioned features, creators will be given more incentive to put out content - expect more content in your Instagram feed!
Sources: WIRED, New York Times.