Written by Norman Isaac Mwambazi

Facebook to pay $1B as a reward to Instagram and Facebook Content Creators

Over the years, creating video content has become more popular, and its creators, depending on how good their content is …

Over the years, creating video content has become more popular, and its creators, depending on how good their content is or how big their follower numbers are, have been able to reap big from their content. The idea of performing seemingly mundane tasks in front of a camera and then having that content shared online on platforms like YouTube, and recently TikTok has turned out to be lucrative, with some creators making millions of dollars a year.

Whereas YouTube and TikTok have been paying millions every year to creators on their platforms, creators on Facebook and its sister app Instagram have not been paid directly by Facebook but by third-party companies who advertise their products in their videos. This is bound to change.

In a Facebook post on Tuesday, July 12, 2021, Facebook Chief Executive Officer (CEO) and Co-Founder Mark Zuckerberg said the social media giant would whip open its big chequebook and pay royalties to the tune of more than $1 billion to creators both on the Facebook site and on the video- and photo-sharing app Instagram though 2022. This may be much to us but certainly not to Facebook, as it became a trillion-dollar company a few weeks ago.

“We want to build the best platforms for millions of creators to make a living, so we’re creating new programs to invest over $1 billion to reward creators for the great content they create on Facebook and Instagram through 2022, Zuckerberg’s post reads in part.

Zuckerberg noted that this would not be Facebook’s first time to invest in content creators on its several platforms and said that more details about how this would be done would be provided at a future time.

“Investing in creators isn’t new for us, but I’m excited to expand this work overtime. More details soon,” Zuckerberg’s post concluded. The announcement fetched massive engagement for Zuckerberg, with more people welcoming of the idea and Zuckerberg loving the fact that they are. 

Facebook generates more about 98% of its revenue through selling advertising space, and some of these adverts are placed on the videos uploaded by creatives or on their pages. Last month, Zuckerberg said that the company would not take any share of the revenue generated by creators on its platform until 2023.

According to Facebook, this $1 billion investment that was announced will benefit creators in a number of ways. The new bonus programs will be available to content creators who become eligible by reaching certain milestones while using Instagram or Facebook tools. Creators will also get seed funding that will enable them to beat the financial hurdles faced while creating content.

There will be more development and improvement on the Facebook and Instagram apps as the company plans to launch a place on these two apps dedicated to creator bonuses. In this new section, creators will be able to learn about the bonuses available to them, among other things.

Not everyone is eligible for these bonuses. They are available to only those creators on Instagram and Facebook who hit particular milestones and are then invited to participate.

One of the bonus programs on Facebook is the In-Stream bonus. This pays an earnings bonus to selected video creators who use in-stream ads. This bonus will be paid over the next four months.

Another bonus for creators on Facebook is the Stars Challenge, which is currently being expanded to include select gaming enthusiasts. This category includes gaming creators, and these will have their bonus paid monthly, but there is a catch: they have to first hit specific milestones on the Facebook platform over the next three months.

On Facebook’s sister platform, Instagram, the IGTV ads bonus program is currently only available to U.S content creators on an invitation basis. Unlike the monthly or quarterly bonus that’s available for Facebook creators, creators on the IGTV ads bonus program will receive a one-time compensation after signing up for IGTV ads. This means that creators earn a fraction of the revenue generated from ads that are run against their videos on Instagram.

Instagram has another program called the Instagram Live bonus, and it is also available on an invitation basis but only functional in 11 countries: United States, United Kingdom, Germany, Brazil,

France, Italy, Turkey, and Spain, among others. With this program, creators are rewarded when they go live, but they become eligible for this after reaching certain milestones like going live with another account.

Finally, there will be another bonus for Instagram creators. Last year in August, Instagram introduced a new feature called Reels, a new way to create and discover short, entertaining videos on Instagram. Basically, Reels are the TikTok section of Instagram. Instagram will introduce the Reels Summer bonus in the coming few weeks, where creators will be paid a royalty depending on the amount of engagement on their Reels. This program, just like those ones mentioned above, will be available on an invitation basis to U.S. creators.

Some of these programs are currently restricted to users in the U.S and a few other countries. However, content creators in other countries are hopeful for the opportunity to participate soon. Facebook boasts of over 2.8 billion active users around the world, and Instagram has more than 1 billion active users, according to data from Statista.