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Instagram to include ads in its livestreams

New tools to share revenues with their creators

Instagram to include ads in its livestreams New tools to share revenues with their creators

Following the statement in which it announced its will to become the main digital platform for fashionInstagram declared that it is going to launch new tools that enable video creators to make money directly on the app: on one side with the introduction of video-ads on IGTV, on the other side giving users the opportunity to buy some badges” during Instagram Live videos. For now, both these functions are experimental. Starting next week, Instagram will test them through 200 partners only in the United States (including brands as Ikea, Sephora and Puma): as it already happens on Facebook Watch, brands and creatives will be granted 55& of the incomes.

Advertising videos are the most "traditional" form of incomes: they will consist in 15-seconds-long vertical videos that will appear in IGTV videos and that can't be skipped (at least, for now). Badges, though, are the real news. During live streams and Instagram Live videos, in fact, users will have the opportunity to buy “hearts”, as it happens on Facebook with “Stars”: one heart will cost 0,99$, two hearts 1,99$ and three hearts 4,99$. Once purchased, these hearts will appear next to the user's name and will indicate them as "most active users". It is a fast way to support each user's favourite accounts and, why not, to be noticed as fans from the content's creators. Viewers can only buy one badge during a live video. 

The introduction of these new opportunities will force Instagram to increase controls on its contents moderation (that, to be honest, is already strict). Since many people will start to invest more on IGTV videos, turning Instagram in a direct competitor to other video streaming services like YouTube, Instagram will have the responsibility of every controversial content. This is why the company is "human" reviewing every content proposed by the 200 brands and creative testing: a review that for now is made by real people, and not by any form of Artificial Intelligence. To be classified as brand-friendly, contents must respect a new “Instagram monetization policy” that is different from any other policy already active on the app, a policy that. - to make just an example - will not forgive any swear. To clarify: you can still swear on Instagram, you can't only if you are making a video-ad for IGTV. 

Creators have different needs and ambitions. Providing a variety of monetization tools is crucial in order to support all creators on Instagram, from emerging digital stars to established entertainers and everything in between, said Instagram COO Justin Osofsky, in a statement. We’re excited to add these two new revenue streams to the mix of tools for creators to help them generate additional income to fuel their work.

Following the positive metrics registered during the quarantine (+4% of incomes), Instagram is investing more and more on new paths and possibilities: recently, it also announced that it'll expand its Live Shopping tools, which allows people to tag their live videos with brands, to more creators who want to sell merch. These decisions mark an important shift for the company: it is the first time that Instagram will start sharing revenue with creators. 

Though its start was not ahead of the expectations (IGTV’s monthly active user base has remained essentially flat at 1.3 million throughout the year, while Instagram attracts over 1 billion monthly active users), the long-video and live stream tools have been among the users' favourites in the past months of lockdown and gained +70% traffic than in 2019.