Instagram to test additional revenue streams

Following rapid growth for its platform during the COVID-19 pandemic, Instagram has launched additional ways for its users to profit from the service including purchasable badges for viewers during Instagram Live videos and advertising on IGTV.

Trialing in the US next month with a small number of creators during the testing phase of the badges, plans are for these new features to be rolled out across additional markets including the UK, France, Mexico and Italy over the upcoming months.

Instagram is following in its parent company’s footsteps in adding ways for users to support creators, after the launch of Facebook Live’s Stars. Instagram’s badges will enable viewers to ‘stand out’ to creators in the comments section during live videos, encouraging closer interaction with fans.

According to the platform, video views for Instagram Live increased by 70% over the February – March period this year as people were asked to stay at home during the COVID-19 crisis.

The test 15-second ads for mobile during long-form IGTV videos will appear when viewers click to watch from previews in their feed, though the ability to skip these ads will also be tested. Revenue generated from the ads will be shared between the platform and the influencers.

‘Creators have different needs and ambitions’, said Instagram COO Justin Osofsky of the new launches. ‘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.’

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