Instagram is rolling out new features that will enable content creators to make money directly from the platform, as it looks to retain talent amid growing competition from rivals TikTok and YouTube.
The Facebook-owned video and photo sharing platform will start sharing revenue with creators through ads on its long-form video service IGTV and purchase of digital badges on Instagram Live.
It will share 55% of the advertising revenues and 100% of the money made from badges during the initial test phase, according to a report by The New York Times.
Starting next week, Instagram will begin testing ads on IGTV with a small group of creators and advertisers in the United States with plans to slowly expand it over time. The ads will be 15 seconds long and will appear when people click to watch IGTV videos from previews in their main Instagram feed.
“We’ll test various experiences within IGTV ads throughout the year – such as the ability to skip an ad – to make sure the final result works well for people, creators and advertisers,” Instagram said in a blog post.
With badges, creators will be able to monetize their Instagram live streams, which has seen significant traction with people staying at home due to lockdown curbs. Instagram claimed that it has witnessed a 70% increase in views from February to March this year.
The company will start testing three badges priced between $0.99, $1.99 and $4.99 with creators and businesses from next months and will later expand across the United States, Brazil, UK, Germany, France, Italy, Turkey, Spain, and Mexico over the coming months. It will also likely roll out a revenue-sharing arrangement with creators after the tests are completed, the report noted.
These badges will start appearing next to a person’s name throughout the live video. “Fans who have purchased badges in Live will stand out in the comments and unlock additional features, including placement on a creator’s list of badge holders and access to a special heart,” the company said.
It’s worth noting that YouTube already provides a similar offering in the form of Super Chat that lets viewers purchase chat messages that stand out in the comments and in few cases, pinned to the top of a chat feed. TikTok also allows live streamers to earn money through virtual gifts from viewers.
In addition to badges, Instagram said they are making it easier for creators to make money through shopping and branded content. The recently launched Live Shopping feature, which lets creators and brands tag products during their live videos, will be available for more creators who want to sell their own merchandise. The company will also expand access to Brand Collabs Manager in the United States, enabling more creators find potential brand partners.
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