Instagram is reducing payments to influencers for short videos

Instagram is reducing payments to influencers for short videos

Instagram has reduced the amount it pays to short video creators as the Meta-owned company tailors its strategy to so-called influencers while under fierce competition from TikTok.

The call-only scheme, which is available to some Instagram users in the U.S., is paid for based on reviews obtained on clips called “Reels.”

Instagram unveiled the program last year, in part in response to the popularity of TikTok, a short video app run by Meta CEO Mark Zuckerberg blamed to steal attention from their social networking apps including Facebook.

Under the Reels system, influencers are given personalized payouts with specific review goals, with money limited to a maximum monthly fee.

Several creators told the Financial Times that payments for Reels have been reduced in the last few weeks by as much as 70 percent per review, and the payment threshold is more than 10 times higher. One user who could be paid a maximum of $ 35,000 said that their personal goal for examinations jumped from 58 million to 359 million.

Influencers were not given reasons for the revised payments, and the move comes despite the company publicly saying it is increasingly focused on video.

“Video is currently driving huge growth online for all major platforms and I think that’s one we need to rely on more,” said Adam Mosseri, head of Instagram. June last year. “We’re no longer a photo-sharing app.”

Ed East, executive director of the creative agency Billion Dollar Boy, which deals with advertising brands on social networks, said that Instagram tended to pay more than TikTok.

“The creators have had different experiences with these programs, and there is uncertainty about potential earnings due to a lack of transparency and information on payout calculations,” he added.

The creators also said they noticed that engagement – the number of views, likes, shares and comments – on Reels has dropped on Instagram in the past month, with its algorithm favoring Carousels, a series of photos in one post.

“We are currently testing Reels Play on Instagram and Facebook, which means bonus payouts can vary as we refine our pricing models,” Meta said. “Our goal is to ensure that the best content on Reels is rewarded on our platforms.”

After TikTok became global the fastest growing social networking application In 2020, competing social media companies rushed to launch short clips and revenue-generating tools to attract and secure content creators, in struggle for influenza talent.

Meta lost more than $ 220 billion in market value in February after warning that users were spending more and more time on TikTok, the biggest one-day drop in the company’s market value.

In August last year, YouTube unveiled the $ 100 million Shorts Fund, which pays creators individual payouts of between $ 100 and $ 10,000 based on engagements with short videos.

Last year, Snap paid more than $ 250 million to thousands of creators who used Spotlight, its short-form offering. It initially paid more than $ 1 million a day to platform contributors, but had to cut payment amounts because it encouraged too much “copied content,” CEO Evan Spiegel told a Goldman Sachs conference last September.

Some companies on social networks also had to introduce detection technology when videos were edited using TikTok tools, to prevent creators from posting the same content on all channels.

“The initial momentum behind Reels is gone,” said Binny Shah-Patel, a food and travel blogger who creates content on Instagram and TikTok. “Creating Reel on Instagram can be tricky and ruinous, you have better features on TikTok and your audience is wider.”

Additional reporting by Hannah Murphy of San Francisco



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