Dive Brief:
- According to Bloomberg, Carolyn Everson, vp global marketing solutions for Facebook, said Instagram is considering a revenue sharing model to incentivize content creation from content producers as well as help them monetize their content.
- In an interview on Bloomberg TV Everson said, “Content is incredibly important on Facebook and Instagram.”
- Instagram’s parent company, Facebook, has faced a decline in original content posted to the platform, and even though advertisers are taking advantage of the growing synergy between the social media platforms, each faces competition from the likes of Snapchat, which is becoming a popular outlet for its users’ photos and videos.
Dive Insight:
The Bloomberg article pointed out that analysts see Instagram as a source revenue growth for Facebook. Its advertising is expected to bring in $1.53 billion in revenue this year, making up 15% of Facebook’s ad sales, according to eMarketer.
About the content revenue sharing plan, Everson said, "We want to be a major distribution platform and we are trying to find different ways to help content producers monetize that content. We are exploring revenue sharing models."
This week Instagram announced it will allow for business accounts in a long-anticipated move that makes the marketing experience on the platform more similar to marketing on Facebook, with measurement tools and advertising opportunities not available to personal account users.
Instagram has over 400 million active users and 200,000 advertisers. It has been busy updating its ad offerings in recent months and as it continues to mature, the photo- and video-sharing platform will likely continue exploring options to lure more advertisers, as well as make it easy for promotion across it and Facebook.