Instagram has started talking with content creators – media agencies and marketers – about purchasing IGTV ads. The ads were introduced by the platform last year to allow the app to compete with players like YouTube. The Facebook-owned platform says that they want to find more ways to help the content creator make money from their content, but they refused to shed more light into the statement according to a report by Ad Age.
Rumor has it that IGTV will have ad breaks, like those on Facebook Watch. At the end of 2018, the video-on-demand service, Facebook Watch, had more than 400 million viewers per month and 75 viewers per day. Facebook allows the publisher and the creator to keep 55% of its ad revenue from the service.
There are some creators with IGTV sponsors, but the service is yet to
introduce a formal and branded offering for content creators. On Facebook, content from brands includes posts by publishers and creators for a sponsor.
Publishers and brands have tried IGTV since it was rolled out last year, June. According to Ad Age’s report, Instagram’s parent company, Facebook, aims at monetizing the platform and then paying content creators to create content that keeps the viewer coming back to watch the vertical video. The primary strength of IGTV is a billion users on the platform. Facebook is working on converting that audience into IGTV regular viewers, but they will need to make the data more detailed. The service does not have as big an audience as Facebook had thought it would upon its launch.
Social media influencers have grown to love Instagram because they can make money off their posts with features like Stories. More than 90% of their campaigns that launch on Instagram receive double the number of shares they get on Facebook and YouTube, according to a study conducted by CreatorIQ. The app has seen a 39% increase in the number of sponsored posts, to put it at 2.1 million, going by a different study by Klear. The results point to the fact that the image sharing app is becoming popular by the day.
Moving content creators to IGTV will need for the platform to offer incentives like revenue sharing from the sponsors the platform is allegedly considering. IGTV has steep competition from YouTube, Amazon’s Twitch and Snapchat in a growing battle of talents that makes it easy for advertisers and their audiences to stay on their chosen platform. The mobile video ads market is getting crowded, what with Amazon testing video ads in their iOS app. The company is planning to extend into Android this year.
The move to get more IGTV users comes at a time when digital publishers and social media companies are preparing for IAB’s NewFronts presentations ending on May 3. Verizon Media, Twitter, and YouTube are some of the companies planning to pitch buyers using demonstrations of their sponsorship and programming opportunities. IGTV and Facebook Watch are not scheduled to present.