Earlier this month, Instagram announced their intention to further support creators that use their platform by improving ways to monetize content through both Facebook and Instagram.
What was already on offer?
Creators could previously use both platforms to collaborate with brands, to sell their own merchandise, earn money through their supporters and earn a percentage of revenue from ads that ran against their video content. They have acknowledged that this is only the beginning of what can be offered in the near future and with that in mind, they have announced the latest ways that users can build an income from using the platform.
For a long time now, creators have shared advice and products they love and have garnered huge followings as a result of the effectiveness and attractiveness of their advice and content. Select creators now have the ability to tag products from the brands they’re collaborating with or use Shops if they’re promoting their own line of products in order to derive affiliate income from their actions.
In the next few months, Instagram will test a native affiliate tool to allow creators to discover available products so that they are able to share them for their followers to shop directly and such content will be clearly labelled as ‘eligible for commission’ in line with the all-important ASA requirement for transparent advertising.
Why is this useful?
On the surface, it appears to be a win for everyone involved. The creator earns a commission without having to approach brands or go through a process to receive affiliate status, the brand generate sales and get more access to easy-to-come-by advertising and the consumer gets the product that they want without much navigating required.
Are there any negatives?
If we delve deeper, an obvious answer may be that the brand in question would lose control of who they have endorsing their products. Of course, the feature isn’t open to everyone but if the creator doesn’t really align with the brand’s ethos things can get a little uncomfortable. And what controls, if any, would be in place to prevent this from happening?
Overall this could be an exciting move for both Instagram and the chosen creators but as the specifics are unavailable at this point it’s hard to know. It is clear that this move from Instagram shows that they’re continually putting pressure on the competition and trying their hardest to keep and increase app users.