Instagram to show ads on IGTV for the first time, share revenue with creators

Instagram launched its IGTV platform back in 2018 as its way of “re-envisioning mobile video” via longer-form content. Now for the first time, IGTV will gain ads and the company will share a cut of the revenue with creators. Additionally “Badges” arrive as a way for fans to donate to creators in Instagram Live videos.

Instagram announced the news in a blog post today titled “Doing More to Support Creators on Instagram.”

We have always been committed to supporting creators as they turn their passion into livelihoods – because every creator is unique, that means providing a mix of monetization tools to help creators of all sizes, from the emerging to the more established.

Given the uncertain circumstances many are facing today, that commitment is more important than ever. Today we’re announcing new ways for creators to make money through Instagram Live and IGTV.

IGTV ads

The first big change is ads in IGTV. This will roll out starting next with a limited number of advertising partners and creators in the US “and will expand slowly over time as we improve the experience.”

Justin Osofsky, Instagram’s COO told The Verge that “Instagram will share an “industry standard” 55 percent cut with creators.”

Here’s how the ads will work/look:

IGTV ads will initially appear when people click to watch IGTV videos from previews in their feed. The video ads will be built for mobile and up to 15 seconds long. We’ll test various experiences within IGTV ads throughout the year – such as the ability to skip an ad – to make sure the final result works well for people, creators and advertisers.

“Badges” in Instagram Live

Badges is the other new way for creators to generate more income:

During the COVID-19 crisis, we’ve seen people supporting their favorite creators in Live with comments, likes and donations. To give fans another way to participate and show their love, we’re introducing badges that viewers can purchase during a live video.

It’s the same idea as what services like YouTube and Twitch have been using for some time:

Badges will appear next to a person’s name throughout the live video. Fans who have purchased badges in Live will stand out in the comments and unlock additional features, including placement on a creator’s list of badge holders and access to a special heart.

More

Instagram also shared that it will more widely roll out the ability for creators to sell merchandise and do the same for the “Brand Collabs Manager.”

In addition to badges in Live and IGTV ads, we’re also making it easier for creators to grow with shopping and branded content.

We recently announced Live Shopping, which will let creators and brands tag products during their live videos. And over the coming months we’ll expand shopping access to more creators who want to sell their own merchandise. We’re also expanding access to Brand Collabs Manager, which helps creators find potential brand partners.

Check out the full announcement post here.

For an inside look at Instagram including how IGTV was developed, No Filter by Sarah Frier is a good read.