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Instagram’s Working on a New Option That Would Simplify Reels Monetization for Creators

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Instagram's Working on a New Option That Would Simplify Reels Monetization for Creators

Instagram’s testing out a new process which could make monetizing Reels much easier, which could be key to holding onto top short-form talent as the competition heats up in the space.

As you can see in these examples, posted by app researcher Alessandro Paluzzi, Instagram is working on a new program that would enable creators to sign up to have overlay ads appear on their Reels clips.

The process would essentially enable Reels creators to include ads in their clips without them having to do any extra work – brands would be able to view eligible clips, then insert ads if they choose.

Instagram Reels monetization test

Which could be a big step, because while it would see ad content intrude on your Reels display, it could also facilitate direct monetization, generating income for creators without them having to organize their own brand deals and sponsorships.

Here’s the thing – short-form video monetization is hard, with the brief nature of the format making it much more difficult to build an equitable revenue share program – because you can’t just insert mid and pre-roll ads and have them intrinsically linked to the performance of each creators’ clips.

That remains the biggest threat to TikTok’s ongoing growth, because while TikTok needs to come up with more creative pathways to monetization, which require more effort on the part of the creator, YouTubers simply need to tick a box to become part of the YouTube Partner Program, where they can earn a lot more money without having to ‘sell their soul’, or even go to any extra effort.

You say you’re fine with ads showing in your videos (which YouTube’s going to insert anyway) and YouTube tracks your views and pays you relative to exposure. More views equals more money. Easy.

That’s not possible with short form clips, which is why this experiment is important, as it could provide a similar pathway to monetization, which simplifies the process on the creators’ behalf.

Right now, TikTok creators are unhappy with their revenue share, and fluctuating payouts from the platform’s Creator Fund – because TikTok can change the parameters at any time, and you can’t know, each month, how much money you might make from your TikTok clips.

Reels is in a similar boat – but if it can provide an easier path to monetization, that could keep more creators aligned to the option, as opposed to switching to YouTube and working to build a following there instead.

TikTok’s also working on various options, including Creator Marketplace to help brands find potential collaborators, its ‘Creative Exchange’ program to partner creators with brands, various eCommerce integrations and tools to display products alongside clips, and its Seller app in some regions which provides more options for listing product inventory to be shown in the app.

But all of these require extra effort on the part of creators to sign up to these programs, and organize brand deals.

This option could eliminate that effort, which could make Reels a more appealing prospect for revenue generation.

Though it won’t hold as much potential as YouTube’s Partner Program. And while Shorts is a lesser element within the YouTube app, the capacity for creators to promote their main channel via their Shorts clips remains a strong lure, which YouTube is looking to push as a means to both keep its top talent, and win over emerging TikTok creators.

That could eventually become a bigger problem for TikTok, if its most popular stars look to take their talents elsewhere, and their audiences with them. That’s what led to Vine’s demise, and while TikTok is now far bigger than Vine ever was, the same threat still looms over the app.

Building processes that make it as easy as possible for creators to monetize their content is key, and it’ll be interesting to see what type of response Instagram sees here, if indeed it does roll the program out to creators.




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Elon Musk’s X and Amazon discuss potential collaboration

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Elon Musk’s X and Amazon discuss potential collaboration

In a significant development in the social media industry, Elon Musk’s social media platform, X, is reportedly engaging in preliminary discussions …

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Threads Looks Set to be Made Available to European Users Next Week

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Threads Looks Set to be Made Available to European Users Next Week

Good news with EU social media fans, with Threads looking set for a December 14th launch in the region, just in time to capitalize on holiday engagement.

As reported by The Verge, EU Instagram users can now access a countdown timer at www.threads.net, which seemingly indicates the exact time for the upcoming EU launch. Meta hasn’t made any official announcement, but the countdown clock is only visible to European users, while EU users can also search ‘ticket’ in the Instagram app to find a digital invitation to Threads.

Which replicates the original Threads launch back in July, which included similar Easter eggs and indicators pointing to the launch date (like the above).

The EU launch of Threads has been delayed by evolving EU data privacy regulations, which, due to the timing of the implementation of these new rules, has put additional development burden on the Threads team to ensure compliance with the new parameters. Amid the initial Threads launch, Instagram (and Threads) chief Adam Mosseri said that it could take “many months” for Threads to reach EU users due to these additional complications.

But we have since seen indicators that Threads is coming.

Last month, The Wall Street Journal reported that Meta had an established plan to launch Threads to EU users in December, while app researchers have found various references to an upcoming “Threads EU Launch” in the app’s code.

Threads EU launch

Given the various strands of evidence, it does indeed seem likely that European users will get access to the app next week. And again, with social media usage increasing during the holiday break, that would also provide the best opportunity for Meta to capitalize on its opportunities.

Which are seemingly on the rise. As more people turn away from Elon Musk’s X project, largely due to Musk’s own divisive commentary, they’re seeking a real-time social alternative, and for many Threads is already filling that void.

That’s especially true for journalists, a common target of Musk’s attacks, who are now establishing new networks within the Threads ecosphere. And while live sports engagement remains high on X, Threads is also making a push to win over more sports communities, even placing ads courtside during the new NBA in-season tournament showcase in Las Vegas.

Threads NBA ad

That’s seemingly prompting more sports fans to post in the app, which will expand again with the arrival of potentially millions more users in the EU region.

So how many more users can Threads expect to gain as a result of its European expansion?

Based on Meta’s EU disclosure data on active users, Instagram currently serves some 259 million monthly active users in Europe.

Instagram’s total, official user count is 1 billion MAU, while Threads now has over 100 million monthly users. So presumably, around a tenth of active IG users are also signing up to the app, which would mean that, at a rough estimate, we’re set to see around 25.9 million new Threads users incoming, if/when Threads is launched in the EU region.

Which is probably not as many as you might expect, but this is based on rough estimates, as Instagram reportedly has more than a billion actives now, and we don’t know the exact, current user counts of either app.

But either way, it will expand the conversation in the app, and enable more people to take part, which has its own expanded benefits. And with around 60 million X users also in the region, that could see a number of them looking to make the switch.

Which is the real aim here. Meta has created Threads as the X alternative, aiming to scoop up former Twitter cast-offs who are unhappy with Elon’s changes at the app. In order to do that, Threads needs to be available in all regions where X users may be looking to jump ship, so its EU expansion is another critical step in this respect.

It’ll be interesting to see what Threads user numbers rise to over the holiday period, and whether it can indeed become a genuine rival for X in total active engagement.

We’ll keep you updated on any official announcement on the Threads EU launch.



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The best social media hacks to blow up your following in just a year

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The best social media hacks to blow up your following in just a year

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Get viral fast. Plus more social media hacks to grow your accounts.

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