Instagram will start selling ads on IGTV, its longer-form video content hub, and will be looking to compete with the omnipotent YouTube.
Facebook has long dreamed of building a video platform that could compete with Google’s YouTube. Today it seems like the social media giant is betting on IGTV, Instagram’s longer-form video content hub, to do just that.
Instagram has begun making its top video creators to partner on tests of ad inserts, with plans to start testing this spring, as reported by Bloomberg.
Creators who will opt-in in will receive 55% of all ad revenue generated by their content on IGTV. While the deal may seem generous, Instagram had little choice: Creators are starting to lose interest in the platform, because of a lack of revenue potential.
“This is another step forward to help creators monetize with IGTV,” confirmed Justin Osofsky, 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.”
Instagram generated over $20 billion last year, accounting for more than a quarter of Facebook’s total revenue in 2019.
You might also like
More from Instagram
Facebook Messenger And Instagram Add Disappearing Messages Feature
Facebook has announced a new 'vanish mode' on Messenger and Instagram that lets you send spontaneous messages that disappear automatically.
Instagram Announces Exclusive Post Malone Show On Watch Together
Instagram announced new show series with Post Malone - exclusively on Messenger and Instagram through Watch Together.
Instagram Adds Reels And Shop Tabs To Its Home Screen
Instagram is updating the design of its home screen for the first time in years to give Reels and Shop …
Instagram Expands Badges In Live To More Countries
After testing badges as a way for creators to monetize their Live broadcasts, Instagram is now expanding the feature to …
You Can Now Go Live For Up To 4 Hours On Instagram Live
Instagram announced it's increasing the time limit for live streams to 4 hours, letting creators run longer live events without …
Age-Gating Can Now Be Applied To Specific Posts On Instagram
Age-gating on Instagram can now be applied to specific branded content posts on Business and Creator accounts.
Instagram Cracking Down On Influencers Who Don’t Disclose Paid Partnerships
Instagram is making changes to crack down on influencers who don't disclose paid partnerships with brands.
Facebook And Instagram Dropping Embedded Content Support On WordPress Sites
Facebook and Instagram embedded content will soon break on WordPress websites unless owners generate an app ID with a developer …
Instagram Brings Shopping Features To IGTV
Instagram has announced the expansion of Instagram Shopping on IGTV; will soon start testing shopping features within Reels.
