Instagram Begins Testing Ads on IGTV, Its Long-Form Video Destination

What has perhaps been one of the worst-kept secrets in the social media universe is now official: Instagram will begin testing ads next week on IGTV, its destination for long-form video, with a “small group” of U.S. creators and advertisers. The ads, built for mobile and up to 15 seconds long, will appear when users click to watch IGTV videos from previews in their feed. Non-skippable and skippable ads will be part of the test, and revenue will be split between Instagram and creators, but exact terms were not disclosed. Established creators will be included in the test, but the program will, at least initially, target emerging creators, Instagram vp of business and media Jim Squires told Adweek. Ikea, Puma and Sephora are among the brands involved in the early testing. It's a long-awaited next step for creators looking to monetize their IGTV programming. Parent company Facebook provides funding for select premium publishers to create content for its long-form video platform, Facebook Watch, and creators have had access to monetization options such as preroll ads and mid-roll in-stream ads. Creators get 55% of the revenue, while the social network keeps the other 45%. Outside of the Facebook family of apps, TikTok introduced playable ads last summer, providing previews of apps or games for users, but TikTok did not provide specific numbers at the time, only saying in its developer documents that the ad format “remarkably improves” user conversions and clickthroughs, “boosting user acquisition” for less money in a shorter timespan. IGTV's timing is notable for brand marketers who have otherwise been turning their focus on platforms that they know to be tried-and-true during the pandemic, said Vic Drabicky, founder and CEO of digital agency January Digital. “When things are going really good and the economy’s good, people test all damn day,” he added. “When things are iffy, it’s a little more conservative.” [kickout id="1"] The new ad offering rolls out as consumer behavior has changed in quarantine. Instagram did not break out viewership data for IGTV, only saying that roughly 800 million people are watching livestreams daily across all Facebook properties. Kin, a lifestyle entertainment company, won't be included in the beta program, but has been "waiting for this type of monetization,” said George Stewart, chief revenue officer of Kin. Views and engagement on IGTV have surged over the past six months, accounting for as much as 20% of total video views across IGTV, YouTube and Facebook Watch. “I am excited to see it all come together,” he added. Instagram began setting the stage for ads on IGTV in January, when it enabled people to upload videos to IGTV the same way they already uploaded videos and photos to the main feed. A month later, head of Instagram Adam Mosseri teased that the platform was "exploring more ways to make it sustainable for creators.” In April, Instagram revamped its standalone IGTV app and added the capability for creators to preview the first 15 seconds of their IGTV videos in Stories, instead of sharing those videos to Stories via static stickers. [article_summary section="1"]Instagram said it will continue testing variations of IGTV ads throughout the year, adding in a blog post that it “will be thoughtful about expansion to ensure we get the experience right.” As Squires noted, “As with any new experiences, it’s going to take time for the payouts to build momentum.” For it to work, the Facebook-owned photo- and video-sharing network will have to establish itself as a "must-watch channel" to disrupt what is already on the market, including Facebook Watch, said Mary Keane-Dawson, CEO of influencer marketing agency Takumi Group. "To be successful, Instagram will need to manage a careful balancing act that will attract both creators and brands through an attractive revenue model, as well as consumers with content that is authentic and tailored to the platform and its audience,” she added. A new monetization tool for creators: badges [article_summary section="2"]As further incentive for creators to monetize their Instagram content, the company is giving creators who sign up for Instagram Live a new way to make money, with badges that can be purchased by fans during livestreams. [kickout id="2"] The badges are another tool Instagram and Facebook rolled out to help small and mid-size businesses during the Covid-19 pandemic, Squires said. Already, the crisis has driven more viewers to Instagram Live. In March, Instagram saw a 70% jump in views of Instagram Live videos compared to February. "Having the support of online communities and some tangible economic support is now needed more than ever for small businesses and creators," he added. There will be different badges at various price points: 99 cents, $1.99 and $4.99. All money will go to the creators during the test, minus transaction fees from Apple or Google, and Squires said that over time, Instagram will explore a revenue-sharing model. Badges will appear next to the fan’s name throughout the live video, and their comments will be highlighted. In addition, creators will be able to see a list of badge holders. Instagram said it will begin testing badges for Instagram Live with a small group of creators and businesses in June, with plans to expand the feature across Brazil, France, Germany, Italy, Mexico, Spain, Turkey, the U.K. and the U.S. In the coming months, Instagram will also expand access to the test it kicked off earlier this month of allowing businesses to tag products from their Facebook Shops or catalogs prior to going live on Facebook or Instagram and discussing them, with those products being shown at the bottom of the video. Access to Facebook’s Brand Collabs Manager, a tool for branded content partnerships, will also be expanded to all creators in the U.S. in the coming months. “Creators have different needs and ambitions," said Instagram chief operating officer Justin Osofsky in an email. "Providing a variety of monetization tools is crucial in order to support all creators on Instagram, from emerging digital stars to established entertainers and everything in between."