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Instagram Introduces Ads For IGTV And Announces New Way For Influencers To Monetize Their Live Streams

by Baller Alert Staff
May 27, 2020
Reading Time: 2 mins read
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Instagram will soon be undergoing some big changes which could see the Facebook-owned service with its most remarkable update yet.

According to The Hollywood Reporter, Instagram is introducing some new features that will allow creators to benefit from their posts.

One of the new key features is Instagram running advertisements on InstagramTV. IGTV allows users to post long-form videos that exceed that 60-second limit for regular posts. Instagram announces the money earned on those ads, will be shared with creators.

The other feature will see the platform give “paid badges” during Instagram Live sessions, as a way for fans to directly support their favorite creatives.

This is the first time that the app, which launched in 2010, will allow its creators to monetize their content.

Jim Squires, VP business and media, says that the new changes will allow creators to create “livings.”

“Creators are such an important part of Instagram, so we continue to look at ways of allowing creators to turn their passions into livings on the platform,” Squires told The Hollywood Reporter.

The new update will begin as early as next week.

When users go to watch an IGTV video, they will now have to sit through a vertically-ran 15-second ad.

However, at the beginning of the new updates, only select groups consisting of marketers and creators will have access to the new features.

Sephora, Puma, and IKEA are the companies that will participate in the early rollout. As far as creators go, Avani Gregg and Salice Rose are on board to give it a try.

Creators involved in the testing phase of the update will earn 55 percent of the ad revenue sold around their videos.

For those wondering if the feature will have the option to skip advertisements, Squires insists that Instagram will test different ad experiences, which includes skippable ads.

“We wanted to start with a small group of creators and marketers so we can set the right tone, and we can advise more closely on doing mobile-first immersive creative in this environment, which is very similar to where we started years ago introducing advertising on the platform,” Squires continued.

As for the paid-badges feature for Instagram Lives, due to the coronavirus pandemic, the use of the feature has skyrocketed, and now creators and entertainers will benefit from their time on the platform.

According to Squires, across both Instagram and Facebook, over 800 million users are watching live streams on a daily basis.

In the future, fans will now be able to purchase badges that will allow them to be more seen by the creator. The price of a badge ranges from 99 cents to $4.99.

Users participating during the trial period will receive 100 percent of the revenue earned from their Instagram live, however, a revenue share will be put in place at a later date, the outlet reports.

“There isn’t a one-size-fits-all approach,” Squires added. “Different creators and marketers are going to want to mix and match these things, so the idea is to provide a number of different revenue streams.”

Instagram
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