Joining YouTube, Instagram is now also going to be a source of income for more content creators across the globe.
Instagram has officially launched its first stage of IGTV monetisation in the United States (US) but there is no mention of this in Mzansi just yet (we can only wait…).
This is the first time that creators will be able to make money directly from IGTV since its launch in 2018. IGTV is a separate video application from Instagram for smartphones on Android and iOS.
What does monetisation mean for creators?
Content creators can start making an additional stream of income by allowing ads to appear on their IGTV videos.
According to Insta, the video ads will only appear when a user clicks to watch an IGTV video from the preview button in their feed. The ads will last up to 15 seconds.
They will also be adding new digital "badges" for IG Live. These will allow viewers to donate money to their favourite broadcasters.
When Instagram approached a few content creators in February to test this venture, the creators received a standard rate of 55% of all ads in IGTV content. So let's cross fingers that this figure stays the same or, even better, that it increases.
IGTV is a separate video application from Instagram for smartphones. /\r\n/Image via Adobe Stock
What does monetisation mean for viewers?
More annoying ads interrupting you while you watch an entertaining video. I know, totally exciting, right? Not!
However, the content creators hope you will think of it this way: You are sharing 15 seconds of your time to make the next person's life a little better by helping them to get a pay cheque. And, who knows, you might learn a thing or two from watching that ad.
Over the course of the year, Instagram will be trying out various ways to make things easy for everyone, such as being able to skip over an ad.
As exciting as this sounds, it's not ground-breaking. YouTube was the pioneer of this opportunity.
However, with the same rate of 55% being offered to creators, Instagram means business and is certainly set on giving YouTube a run for its money.
We also need to applaud them for continuing to expand, adapt and innovate in a way that really prioritises and is beneficial for content creators.
In case you're wondering who would pay more between the two heavyweights, here's something to consider. According to Bloomberg, Instagram made a stupendous $20 billion in advertising revenue last year, which is $5 billion more than YouTube's $15 billion.
Everybody wins with IGTV monetisation
IG can certainly attract many more creators onto the app with this new feature. And with more creators on board, more viewers will visit the app and everybody is happy.
Content creators can even have two simultaneous channels, YouTube and Instagram, to maximise profits.
Here's some advice though: Now more than ever your content has to be unique to stand out.
Create more videos and grow your following so that when this wave hits South Africa, you are able to ride it.