Instagram announced Wednesday that it would be showing advertisements on IGTV for the first time.
The new ads would also allow for the revenue to be split between creator and the platform – providing new revenue opportunities for people creating video content on the platform.
Facebook’s latest move in targeting the multi-billion dollar video ad market is a major development, especially with its 3 billion monthly active users.
It doesn’t stop there. With the growth in Instagram revenue year-on-year, the platform has seen $20 billion in ad revenue in 2019 alone, accounting now for more than 25% of Facebook’s global revenue.
With Instagram influencers and creators vying for attention on different platforms, Instagram’s new revenue share options means that it will become a viable competitor to YouTube as it seeks to increase the user base in the face of fierce competition in the video space. Snapchat and TikTok are also competing for ad dollars through video monetization.
IGTV was launched just 2 years ago and has since become a go-to video platform within Instagram for content creators and brands to share longer-form content.
Could this latest move encourage more influencers to try out Instagram vs YouTube for monetization?
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