Instagram confirmed last month it was prototyping ad-share monetization on IGTV. Now, a new report suggests Instagram is contacting emerging creators to test its ad-share beta.
The Bloomberg report claims the pilot program will begin this spring and will give selected creators 55% of the advertising revenue earned by their IGTV videos. That is the same exact cut a partnered creator would get on YouTube. Ever since its launch in 2018, the IGTV has worked to be a strong competitor against YouTube. Up until this point, it hasn’t had a strong impact, namely due to its lack of monetization options on the platform.
“This is another step forward to help creators monetize with IGTV,” Instagram COO Justin Osofsky told Bloomberg in a statement. “To be sure we get this right, we are talking to a few emerging creators to help us test this and plan to expand slowly.”
Who will be added to the program?
The report doesn’t say how many creators will be accepted into the program and testing the beta. There are also no names of any creators currently accepted. The only piece of information Instagram revealed is that they weren’t going to necessarily focus on the biggest stars on their platform. So, the tests and adjustments they make might better gauge what smaller creators want.
IGTV could find more success in the future
It is no secret IGTV has struggled since its launch. As we said before, it’s primarily due to its lack of monetization. Reportedly, Instagram made $20 billion last year from in-feed and Stories advertising. Creators got nothing. However, the main Instagram app has been a huge marketplace for sponsored content, where creators work with third-party brands. Despite that, IGTV has lacked monetization options, which isn’t very motivating for creators. After all, why upload your hard work to a platform where you won’t make money for it? All the while, there are other platforms that will pay for your work.
Now with plans to add more monetization to the platform, IGTV is positioning itself to challenge YouTube. While giving creators the same 55% advertising revenue cut, IGTV has even suggested funding some creators’ cost to make content. We will have to see if any of this really challenges YouTube or if IGTV will continue to struggle to attract creators to its platform.