Instagram’s IGTV service for long-form videos may not be as popular as YouTube, but the media sharing platform is working to make it more prominent amongst users by adding new features gradually.
And now Instagram plans to make ‘revenue’ by adding advertisements to the videos played on IGTV.
According to Bloomberg, the company has already started contacting video creators, asking them to partner on ad tests. Through this feature, the ad partners will receive 55 percent share of the advertisement – the same rate offered by YouTube.
The Facebook-owned company is planning to initiate the test feature by the start of the spring season.
When contacted, the chief operating officer of Instagram confirmed the news and said that they are working on ways to help creators monetize with IGTV. The COO also said that the feature will be put on test phase by a few creators before it is made generally available to all their partners.
Ads on Instagram – main feed and Stories - have been a great success for the marketers. In fact, the ads are able to generate a rough $20 billion annually in revenue. However, digital creators prefer to stay away from the IGTV app due to the lack of profits on the platform. But seems like this will change as Instagram will soon share advertising sales with the creators on their video service.
Nevertheless, YouTube will not be an easy contender. The world’s largest online store managed to generate $15 billion in advertising sales last year and attracts 30 million visitors every day.
Read next: You Might Soon Be Able to Post Live Streams to IGTV
And now Instagram plans to make ‘revenue’ by adding advertisements to the videos played on IGTV.
According to Bloomberg, the company has already started contacting video creators, asking them to partner on ad tests. Through this feature, the ad partners will receive 55 percent share of the advertisement – the same rate offered by YouTube.
The Facebook-owned company is planning to initiate the test feature by the start of the spring season.
When contacted, the chief operating officer of Instagram confirmed the news and said that they are working on ways to help creators monetize with IGTV. The COO also said that the feature will be put on test phase by a few creators before it is made generally available to all their partners.
Ads on Instagram – main feed and Stories - have been a great success for the marketers. In fact, the ads are able to generate a rough $20 billion annually in revenue. However, digital creators prefer to stay away from the IGTV app due to the lack of profits on the platform. But seems like this will change as Instagram will soon share advertising sales with the creators on their video service.
Nevertheless, YouTube will not be an easy contender. The world’s largest online store managed to generate $15 billion in advertising sales last year and attracts 30 million visitors every day.
Read next: You Might Soon Be Able to Post Live Streams to IGTV
