Instagram plans to roll out ads in IGTV to compete with YouTube


15, 2020

It looks like Instagram is planning to jump into the video revenue game as the company is working on a business model to integrate ads into its IGTV platform. For those who don’t know, IGTV allows Instagram users to upload and share long videos with their followers. Currently, IGTV is not monetized and but Instagram is working on a model that will allow creators to make money off IGTV videos.

According to Bloomberg, Instagram has approached several creators to partner on ad tests. Those in the program will receive a 55% share of all advertising in IGTV, which is what YouTube pays creators at the moment.

This is another step forward to help creators monetize with IGTV. To be sure we get this right, we are talking to a few emerging creators to help us test this and plan to expand slowly.

– Justin Osofsky, CEO, Instagram

While Instagram monetized stories a long time ago, it didn’t inject ads into IGTV which was one of the reasons why we don’t have many creators on IGTV. The company generated over $20 billion in revenue last year from ads in Instagram stories. IGTV was launched back in 2018, but we still haven’t seen a whole lot of people onboard the platform so it’s hard to say if Facebook’s latest endeavour will be a success. Nevertheless, it looks like we will be getting even more ads this spring as the company will start testing its new business model.

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