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Instagram will share revenue with creators for the first time


For the first time in its history, Instagram will start sharing revenue with creators through ads in IGTV and badges that viewers can purchase on Instagram Live. The company has hinted that ads would come to IGTV for more than a year, often saying the long-form video offering would be the most likely place it’d first pay creators.

Next week, ads will begin showing up in IGTV for only around 200 approved, English-speaking creator partners, including Adam Waheed and Lele Pons, from a handful of major advertiser partners like Ikea, Puma, and Sephora. Instagram will share an “industry standard” 55 percent cut with creators, Justin Osofsky, Instagram’s COO, tells The Verge. (This is also how much it shares with Facebook Watch creators.) The goal is to eventually expand this group and bring it to more creators around the world.

To begin, the ads will only appear when people click to watch IGTV videos from previews in their feed, and the initial round of ads will be vertical videos up to 15 seconds long. The ads won’t allow people to swipe up; instead, they’ll require users to tap through for content, Osofsky says. The team will also test various experiences within IGTV ads throughout the year, like being able to skip ads. Osofsky says to ensure that ads are only shown with brand-friendly content, creators will have to adhere to an Instagram monetization policy, which differs from the usual content policies on the platform. Osofsky says, for example, people can swear in videos on the platform, but they won’t be allowed to if they want to monetize. This is just one way Osofsky says it’ll help guarantee that brands’ ads never show up in front of inappropriate content.

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