Instagram is partnering with top video creators to test ads in IGTV, the long-format in-app video hub.
Reportedly, the creators who are part of the program testing ads in IGTV will receive a 55% share of the revenue generated, like YouTube.
In February 2020, Instagram was found to be testing monetization tools for creators. Eligible creators could monetize their IGTV videos by using the tools and agreeing to follow the Partner Program Monetization Policies.
Alexandru Voica, EMEA Communications Manager, Facebook had mentioned they're continuing to explore ways to help creators monetize with IGTV. The new move seems to be a step further.
Justin Osofsky, Chief Operating Officer, Instagram told Bloomberg, "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".
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Monetization will also attract creators that have stayed away from IGTV due to a lack of revenue generation. And since the share of revenue generated with creators is at par with YouTube, IGTV may pose a direct threat to the largest online video hub.
Presently all sections of the Instagram app serve ads - Home Feed, Explore, Stories, and IGTV. Profile and Activity tab are the only odd ones out.
While Instagram has been adding means to generate revenue for creators such as the Branded Content tag in IGTV for long-format branded content, IGTV's popularity is at a questionable stature.
Instagram recently discarded the IGTV button from the Feed due to lack of usage. The platform mentioned, more users would only get on IGTV after seeing a preview in the feed or Stories.