Instagram introduces ads to IGTV format

Creators will share revenue.

Instagram: creators to get 'industry standard' of 55% share in ad revenue
Instagram: creators to get 'industry standard' of 55% share in ad revenue

Starting next week, Instagram is introducing ads in IGTV, its long-form video format, as well as paid badges for Live content. In a first, the company will share revenue from both with creators.

According to a statement, IGTV ads will initially appear when people click to watch videos from previews in their feed. These ads will be built for mobile and up to 15 seconds long, and Instagram will test experiences within IGTV ads throughout the year – such as the ability to skip – to ensure the experience works across its ecosystem of consumers, creators and advertisers.

Initially, these ads will show up in IGTV for about 200 approved, English-speaking creator partners, including Adam Waheed and Lele Pons, from a handful of major advertiser partners such as Ikea, Puma and Sephora. Instagram will share an "industry standard" 55% cut with creators, Justin Osofsky, Instagram’s chief operating officer, told the The Verge. The goal is to eventually expand this group and bring this to more creators around the world, he added.

With people locked down at home, Instagram creators have seen sharp growth in the use of its Live format too, leading to a 70% increase in views from February to March. From fitness instructors and dancers to artists and chefs, Live has helped creators and businesses stay connected to their followers and bring people together, the company said, and with paid "badges", creators can generate income from their content.

Instagram said these initatives are in addition to Live Shopping, which allows creators and brands to tag products during live videos. Over the coming months, it will expand shopping access to more creators who want to sell merchandise, with wider access to Brand Collabs Manager, which helps creators find potential brand partners.

A version of this story first appeared on Campaign Asia-Pacific


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