Good news for influencers! This week, Instagram announced several new features so that they can (finally) monetize their content.
Big news on Instagram
The Facebook-owned app announced on Wednesday that it would start serving ads on IGTV, its home for long-form videos, and sharing that revenue with Instagramers.
It also offers them digital badges that fans can purchase through Instagram Live, product sales through Instagram Shopping, and a Brand Collabs Manager extension, which facilitates sponsored campaigns between businesses and influencers.
These updates are in addition to Instagram’s extensive live-shopping features already announced last week.
Instagram has learned the lesson …
Instagram has understood it well: influencers are an essential asset on social networks, because they stimulate engagement. So far, Instagram has played a relatively passive role in monetization, as influencers were free to negotiate their own brand deals, as long as they didn’t violate the platform’s terms of service.
But this social network does not directly remunerate influencers and does not give them any percentage of sales made thanks to the platform’s purchase functionality, for example. They are paid directly by brands, rather than Instagram, which only hosts their content.
According to a report published last February, some influencers have been skeptical of Instagram’s IGTV functionality. According to them, it has too many similarities to YouTube and TikTok… without their advantages.
On YouTube for example, content creators can run ads on videos that will be monetized. And on TikTok, influencers can directly win digital gifts. Instagram influencers have therefore not hesitated to turn to other social networks with more stable sources of income.
A case to follow!
With its new monetization features, Instagram hopes to convince them to continue producing content. Ads from brands such as Sephora, Ikea, Puma and other test partners will start appearing in IGTV videos next week, including 55% of advertising revenue will return to the content creator.
With the introduction of badges, they can also be paid via Instagram Live. These badges will appear as little hearts next to a user’s comments on a live stream and cost between 99 cents to $ 4.99. For now, Instagramers will receive 100% of the revenue from these badges, although Instagram could roll out a revenue sharing agreement after the testing phase ends, possibly in 2021 …