Instagram will start showings ads on IGTV, and will share revenue generated from those with some creators, starting next week, it said in a blog post yesterday. The platform will share 55% of the IGTV ad revenue with a creator, Justin Osofsky, Instagram’s COO, told the Verge. Instagram will also introduce new “badges” on Instagram Live next month, which users can purchase to “stand out” while a creator is live (more on that below). Badges will show as a tiny sticker that will appear next to a user’s name during a Live session after they’ve bought them. This comes as the COVID-19 pandemic has caused a deep dent in ad revenues across the board, as highlighted by companies such as Google and Amazon.
IGTV ads will initially appear when people click to watch IGTV videos from previews in their feed. The video ads will be built for mobile (vertical orientation) and up to 15 seconds long. Instagram said it will test different ways to interact with an IGTV ad, including the ability to skip it. For now, IGTV ads will only show up on a small group of creators’ content (200 per Verge) in the US, but will expand slowly over time.
For now, all revenue from badges will go to a creator: With badges, creators will be able to monetise their Instagram Live, which has seen a 70% increase in viewership between February and March. Badges will appear next to a person’s name throughout the live video, and anyone who has purchased badges in Live will stand out in the comments and unlock additional features, including placement on a creator’s list of badge holders. YouTube has been offering a similar service called Super Chat since 2017, where viewers can pay to pin a comment on a creators’ live stream for upto 5 hours.
Viewers will be able to choose between three different badges, ($0.99, $1.99, $4.99), and for now, Instagram won’t take a cut of revenue, but will introduce a revenue sharing model going forward, Osofsky told the Verge. Like ads on IGTV, badges will be tested with a small group of creators and businesses, following which it will expand across the US, Brazil, UK, Germany, France, Italy, Turkey, Spain, and Mexico.
Live shopping is coming to Instagram: Earlier this month, Facebook had announced that soon, sellers, brands and creators will be able to tag products from their Facebook Shop or catalog before going live on Instagram and Facebook, and those products will be shown at the bottom of the video for people to buy. “Over the coming months” Instagram will expand shopping access to more creators.