instagram rolls out fan badges for live videos, expands igtv ads test

Instagram is announcing a new method for content creators to generate income. The platform is currently releasing badges for Instagram Live to an initial group exceeding 50,000 creators. These badges will enable fans to purchase them during live broadcasts to gain prominence in the comment section and demonstrate their support.
The concept of earning revenue through fan badges isn't new to Instagram. Other live streaming services, such as Twitch and YouTube, already feature comparable systems. Facebook Live also provides fans with the option to buy stars during live videos, functioning as a virtual tipping feature.
Instagram users will have three choices when purchasing a badge during live videos: options priced at $0.99, $1.99, or $4.99.
During Instagram Live sessions, badges will not only highlight fans’ comments, but also unlock exclusive benefits, according to Instagram. These include a position on the creator’s list of badge purchasers and access to a unique heart badge.
These badges and the associated list simplify the process for creators to quickly identify their supporting fans and acknowledge them, if they choose.
To begin the rollout of badges, Instagram will temporarily match creator earnings from badge purchases made during live videos, starting this November. Creators like @ronnebrown and @youngezee are among those currently testing the badges.The company states that it is not taking a percentage of the revenue at this initial launch, but plans to explore revenue sharing as the badge testing expands.
“Creators are instrumental in driving culture forward. Many dedicate their lives to this pursuit, and it’s vitally important to us that they have straightforward ways to earn money from their content,” stated Instagram COO Justin Osofsky. “These are further steps in our commitment to making Instagram the premier platform for creators to share their stories, expand their audience, and earn a livelihood,” she continued.
In addition, Instagram is broadening access to its IGTV ads test to a larger number of creators. This program, which began earlier this year, allows creators to monetize their videos by including advertisements. Currently, creators retain at least 55% of the revenue generated from these ads, Instagram reports.
The introduction of badges and IGTV ads had been previously announced, with Instagram indicating it would test the former with a select group of creators earlier in the year.
These changes occur following a period of significant growth on Instagram’s live video platform, as creators and viewers spent more time at home during the coronavirus pandemic, leading to the cancellation of live events, gatherings, concerts, and similar activities.
At the onset of the pandemic, Instagram reported a 70% increase in video views for Live creators between February and March of 2020. In the second quarter, Facebook also noted growth in monthly active users (rising from 2.99 billion to 3.14 billion in the first quarter), attributing this to increased engagement from consumers spending more time at home.