IGTV has made a huge step to take on the likes of YouTube. The video-sharing platform is now running ads alongside creators’ videos and sharing the revenue.
Currently, Instagram is just testing adding commercials in IGTV videos, however, this form of monetization has been absent from the platform since its launch, which has hindered its ability to steal any creators away from platforms with more monetization options. Additionally, alongside the commercial feature, Instagram is testing a new monetization feature called badges.” The feature allows creators to sell badges to their fans during live streams.
IGTV commercials aren’t ready to air just yet
As stated above, Instagram is still testing the commercial feature. Currently, the company is testing the feature “with a small group” of accounts. So you likely won’t be seeing the new commercials just yet. Reports say the adds are running up to 15 seconds long and appear when you tap to continue watching an IGTV video from the main feed.
Like YouTube, Instagram is experimenting with a skip ad option. The platform wants “to make sure the final result works well for people, creators, and advertisers.”
Creators will get a cut of the revenue
The big news for creators is this: Instagram will share the revenue made from the ads. The arrangement looks very similar to YouTube’s arrangement. Creators will keep “at least 55 percent” of the revenue according to an Instagram spokesperson. Additionally, Instagram creators will have an additional option by selling badges during live streams. Those that sell them will initially get 100 percent of the revenue. However, Instagram might lower that percent as they will “explore revenue share for the product in the future,” according to a spokesperson.
Instagram creators will also be able to sell their products in their live streams in the coming months.
Taking on YouTube with more monetization options
At launch, a huge fault IGTV had was the lack of monetization. Influencers and creators felt there wasn’t too much to gain uploading and streaming on the platform if they weren’t getting any revenue. That mindset, however, could quickly change as Facebook rolls out these features on Instagram.
Image courtesy: Instagram