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
Instagram Celebrates Lunar New Year
Instagram is celebrating the Lunar New Year with special stickers, an AR filter, and special appearances by Creators.
Instagram To Start Removing Accounts That Send Abusive DMs
Instagram has announced new measures against bad behavior on its platform, including removing accounts that send abusive DMs.
Instagram Will Deprioritize Content Recycled From Other Apps
The Instagram algorithm will make content recycled from other apps like TikTok less discoverable on Reels.
Instagram, TikTok, And Twitter Team Up To Fight Username Hacking
Username hacking consists of stealing rare and coveted usernames on platforms like Instagram, and then sell them for a profit.
The New Instagram Content Publishing API Makes Scheduling Posts A Reality
Instagram has rolled out a new Content Publishing API that will support scheduling and publishing single photo or video posts.
Instagram Introduces A New Professional Dashboard To Help You Make Better Decisions
The Instagram Professional Dashboard is a single destination to help track your performance and access professional tools.
Facebook Temporarily Disables Some Messenger And Instagram Features
Facebook has temporarily disabled some Messenger and Instagram features in response to new rules for messaging services in Europe.