Instagram announced today that it will be expanding access to a new monetization feature called Gifts to more creators across the U.S. The feature, which first began testing last year, allows fans to create virtual gifts with themes. You can provide direct financial support to your favorite creators. Gifts are purchased in the Instagram app using virtual currency stars and can be purchased at prices from as little as 10 stars to hundreds of stars.
Sending stars was already available for live and on-demand videos, including reels, but the addition of gifting could give Instagram a competitive edge over rivals like TikTok, where virtual gifting is already available. can. It also gives Instagram creators another revenue stream besides advertising, as Instagram creators must share a portion of their earnings with Instagram.
Creators in the US can check their eligibility to receive gifts from their professional dashboard in their settings. If so, you can toggle the option on if you prefer.
On the web, Stars sells for $0.99 in packs of 45 and goes up from there, but they can also be purchased directly within the Instagram app as an in-app purchase.
Image credit: Instagram
In an announcement this morning, Instagram noted that the Reel Chips feature was first rolled out in November. But it was discovered long before that. Last fall, the company confirmed to TechCrunch that it developed an internal prototype for Gifts. It was originally called “Content Appreciation”. This follows the development of other in-app tipping features, such as the ability to send stars to creators and the launch of badges in 2020, with the addition of a heart icon next to names in comments. But while Badge was only meant for live videos, Gift has focused on reels since its debut.
When available, you’ll see a “Send a Gift” option above the reel creator’s username, as seen by early testers Hamilton and Olivia.
Image credit: @hammyandolivia (opens in new window)
The virtual chips program’s focus on reels may also encourage more creators to get their hands on them. This remains a priority for Instagram in its fight against TikTok. The company recently admitted that it may have pushed too many videos to its users in the last year, but continues to see Reels as a way to boost its growth. In Q1 2022 earnings announced earlier this month, Meta CEO Mark Zuckerberg said that Reel’s video views on Facebook and Instagram will more than double in 2022, and people sharing Reels with friends said they had more than doubled in the past six months across both apps.
Image credit: Instagram
However, while reels are gaining traction among users, they present more challenges when it comes to generating revenue. Did. This means that as Reel grows, it will take time away from the more profitable parts of the app and the company will lose money. Growing Reel profitably while keeping up with consumer demand for the format It is a meta-prediction that it will not be possible until the end of the year or next year.
Given this situation, it’s easy to see why Instagram would want to plug another monetization lever into their reel system, like they’re currently doing with Gift.
The company says it aims to make the feature available to more creators in the future.
