Instagram is looking to offer creators revenue streams.
The mobile app has announced it’s testing two different ways for creators to earn money, through the implementation of IGTV ads and the introduction of comment badges.
Starting next week, the IGTV ads will begin appearing for a limited number of creators – 200 English-speaking partners – from a handful of Instagram’s advertisers, including Puma, Ikea and Sephora. The goal is to eventually expand this to include more creators from around the world.
The ads will only appear when a user clicks to watch IGTV from a preview on their Instagram feed, with the initial ones being vertical videos of up to 15 seconds. Depending on how the test goes, the app will also try out other features, such as skippable ads.
Those with ads enabled on their videos will have to adhere to Instagram’s monetisation policy, and, according to app COO Justin Osofsky, creators will receive a 55% cut of all profits. While Instagram will be using human-review for every IGTV video before monetisation, it is looking to eventually use a combination of human and software review.
— Instagram (@instagram) May 27, 2020
Creators and businesses will also be able to earn money through the selling of comment badges on Instagram Live.
Set to begin testing in the United States next month, three badges will be available – one heart for $0.99, two hearts for $1.99 and three hearts for $4.99 – which will allow the purchaser’s comment to be prioritised and placed at the top of the comments section. Users will only be allowed to make one purchase a video.
During the initial test, Instagram won’t be taking a cut of the revenue. However, it does have plans to split the profits in the future, with a percentage not yet announced.
If the test is successful, Instagram plans to expand the badges feature outside of the US to include Brazil, the UK, Germany, Mexico, France, Italy and Spain.