The Importance of IGTV Monetization: The Future of Social Media
In the 21st century, when the internet is accessible to millions of people, platforms such as Youtube, Instagram, seek to capture the attention of users and drive them to their platform. However, with all major platforms, they are businesses that need to make money to be sustainable and at the same time provide value to users to keep them as “customers”. The simplest way to make money that has existed for over 400 years is advertisements. Companies like Youtube, Spotify have led and developed cohesive platforms where ads are easily incorporated into the platform.
YouTube
Owned by Google, Youtube is a platform where users can upload video content in any niche for the world to see. It is one of the biggest social media platforms with a wide range of demographics and creators.
The 45/55 Split Rule
Youtube operates solely off advertisements, making money off of a policy known as the 45/55 Split Rule. This rule states that creators who incorporate advertisements into their videos will receive 55% of the income from the advertisement while Youtube receives 45%. This is already a big deal, as the creator is given a HUGE chunk of the income by just putting ads in their videos. Youtube uses this strategy to provide creators with an incentive to stay on the platform and attract even more creators to the platform.
Though this may seem simple, it is this rule that shapes what Youtube is, a community of people who are providing high-quality content while also making money to support themselves. It is this strategy that ensures Youtube’s longevity and growth.
What about Instagram?
With so many titans in the social media world, keeping creators on the platform is what drives the platform towards success. This can be seen in multiple deals such as Joe Rogan’s deal uploading exclusively on Spotify for $100 million, and Ninja streaming exclusively on Mixer for $20-$30 million/year.
Keeping users on the platform is tricky, so what it boils down to is, you guessed it monetization.
The Introduction of IGTV — Long Video Competition
As you may know, when posting on your feed, or stories, the amount of time can only exceed 60 seconds(feed), and 15 seconds(story). This isn’t handy for many creators as 60 seconds is only enough for a short clip that isn’t enough for action-packed content. That’s why on June 20, 2018, seeing Youtube’s success, Instagram decided to unveil its form of long duration video, IGTV.
The Future of IGTV
After the introduction of IGTV, many users finally started uploading long-form content on Instagram. Whether it be prank videos, cooking tutorials, or compilation videos, these were things that were not getting uploaded as efficiently as before. This continued for 2 years, along with new updates, features, and improved content visibility.
However, the long-duration video takes time and effort to make. Sustainability for this type of work is demoralizing especially since if there is no compensation. That’s why on May 27, 2020, Instagram announced the IGTV monetization. Like Youtube, an advertisement will play where the user puts it, whether it be at the end or beginning. A beta of this feature is now being pushed out to eligible users who qualify based on a guide of set requirements. This news is fantastic, especially for users who are uploading constantly during the Covid-19 pandemic and in the future, finally giving them compensation for their hard work and time.
Future Adaptations
As the world progresses into a new age, digital influence is becoming more and more prevalent. Companies are realizing the importance of new strategies and straying from old ones, billboards, newspapers, etc. Creators are realizing the power they hold in their hands, monetizing, accessing an audience, and most importantly retention. Creators are also realizing just how important they are for driving the growth of multiple social media platforms. I believe that in the future, many more companies will incentivize users to use their platforms, allowing you to make that internet bread.
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I will be writing more about my Instagram experience and financial freedom. Please let me know in the comments on how I can improve my writing, and if you enjoyed please consider smashing that follow button!!
— Tristian
