Instagram is launching the first stage of IGTV monetisation efforts to challenge YouTube’s business model. Reportedly, the company started reaching out to its top video creators last Friday in order to invite them to participate in the initial stage of ad tests. The company will start testing the ads this spring and those in the program will receive more than half percentage share of all advertising in IGTV, the same rate as YouTube.
“This is another step forward to help creators monetize with IGTV,” Justin Osofsky, chief operating officer of Instagram, said 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.”
Inability to generate revenue was the major reason top creators stayed away from the IGTV platform. But within the main app, ads that look like regular posts already generate about $20 billion per annum. The lack of monetisation tools for IGTV was the major drawback about the platform. But the new update provides some income stream for influencers, that could entice more of them and their large audiences.
Instagram has now become a serious content marketing, selling, networking and audience targeting platform for business or individuals. It has over a billion active users who are really a lure for creators to post content. Brands or individuals have to think strategically about how they can make the most of influencer opportunities on IGTV to reach Instagram’s highly engaged audience and drive additional revenue.