Instagram has been a famous platform amongst creators for years now. Creators to date prefer starting their journeys with Instagram and then head on to other platforms, keeping in mind the wide approach it has. Full-time Instagram creators have relied on indirect sources of revenue like branded content and merchandise sales to support their livelihoods.
Recently, the now Facebook-owned platform, Instagram, is testing out a new feature that lets viewers purchase during a live video, allowing creators to monetize live videos. The trial will start from the upcoming month. Users will now be able to buy ‘Badges.’ The Badges will appear next to a person’s name throughout a Livestream and will cost 99 cents to $4.99. Fans who have purchased Badges in Live will stand out in the comments and unlock additional features, including placement on a creator’s list of Badge holders. For now, creators will receive 100% of the money made from badges, but later, Instagram will “explore revenue share” for Badges keeping in mind the success of the plan.
In the next few months, it plans to expand Badges across the U.S., Brazil, the U.K., Germany, France, Italy, Turkey, Spain, and Mexico which is dependent on the success of the trial.
Previously, Instagram only worked with celebrities, paying “to offset small production costs” for IGTV content, reported Bloomberg, but it did not offer any way to earn profits. This left creators no choice but to look out for sponsored content or product placement to generate money or to try to push their followers to platforms like YouTube where they could earn a reliable cut from ads and views.
“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 Justin Osofsky, Instagram’s chief operating officer.
Reports also suggested that Instagram will hide the number of likes from posts. The social media platform will also begin rolling out IGTV ads from brands such as IKEA and Sephora as of the beginning of next week, with 55% of ad revenue going directly to the creator. Initially, Instagram monetization features will be limited to a small set of hand-picked creator partners.
In addition to Instagram Live Badges and IGTV ads, it is also trying to help creators expand their e-commerce and branded content businesses on the platform. It recently announced Live Shopping, which will let creators and brands tag products during their live videos.
In the next few months, Instagram plans to will expand shopping access to more creators who want to sell their own products. The company also plans to widen access to Brand Collabs Manager, a marketplace brand to connect with sponsors, to all U.S. creators over the next few months.