Instagram just announced one of their biggest changes to their advertising platform. You now will be able to advertise on IGTV (previously unavailable). It appears Facebook (owner of Instagram) is looking for additional ways to monetize its platform. As of now 25% of Facebooks revenue comes from Instagram. This is a pretty large chunk of their business as potentially has the ability to grow even further.
Facebook's biggest competitor is Youtube, this is why Facebook launch IGTV which works as a standalone app or with the regular Instagram app.
But here are some big takeaways:
This is Facebook's way of competing directly with Youtube. As the shift for more and more video content increases in demand, Facebook is launched IGTV in hopes of competing directly with Youtube in the future. This day has finally arrived. After almost a full year of IGTV it appears Facebook is ready to go toe-to-toe with Youtube. Although it does have a long ways to go when it comes to competing with the video giant, offering 55% in ad revenue sharing to content creators is sure to drive an influx of content to their platform.
This is great news for advertisings and marketers who are always looking for new ways to engaging their audience.
We are likely to see some new placement options within Facebook Ads Manager, which is exciting because we will also be able to test IGTV specifically so we can A/B test against traditional placement areas like feed or stories.
I'm not an influencer to this doesn't benefit me personally, but as an advertiser I see huge opportunity for advertising for my clients. Video is slowly becoming king (if its not already) when it comes to content people are consuming. It isn't clear exactly what Instagram ad revenue sharing will look like just yet. It it will be rolled out for all content creators or to a select few first. But it appears IGTV is here to stay and will only further solidifies Facebook hold on the social media space.