Social media platforms are going to war for online talent
March 19, 2021. Summarized by summa-bot.
Compression ratio: 47.1%. 2 min read.
When Katerina Horwitz started out as a social media influencer in 2016, she didn't earn much money beyond a handful of sponsored posts. A few years later, Horwitz and her husband Yinon quit their day jobs, started a joint Instagram account and got creative with monetizing their 400,000 followers, including selling their own photo filters and building an app that offers editing templates for Instagram Stories.
(CNN Business)When Katerina Horwitz started out as a social media influencer in 2016, she didn't earn much money beyond a handful of sponsored posts.
But recently they've found a simpler revenue stream: earning money directly from social media companies.
They've also earned smaller sums from TikTok for being part of its creator fund, which pays social media influencers based on their number of video views.
Creators are the lifeblood of any social media platform, driving trends and engagement and building a loyal community.
But increasingly, social media companies seem to be waking up to the reality Horwitz described: Creators may join a platform to build an audience, but ultimately the platform has to pay up for them to stick around.
In recent months, major tech companies have stepped up to try to do just that, rolling out more and more ways for creators to make money on their platforms, both from ad revenue on their content and direct handouts.
These announcements reflect both the value of top content creators to the platforms and the fact that there have never been more avenues for internet personalities to make money directly.
Last week, Facebook announced social media stars can now earn revenue from all types of videos, including those as short as one minute long, and that it's testing new monetizeable sticker ads in Stories.
In recent years, the company has rolled out other moneymaking abilities for creators, including earning revenue from ads running on their videos, fan subscriptions that offer a monthly reoccurring payment and the ability for followers to send virtual "Stars" to their favorite creators to show support.
After resisting paying influencers directly for a long time, Instagram announced similar moves to Facebook last year, offering monetizeable ads in its long-form IGTV video feature and digital badges that fans can buy through Instagram Live.
Yoav Arnstein, director of product management at Facebook, told CNN Business that creators are "absolutely critical" to social media platforms.
With the exception of YouTube, which has long allowed influencers to earn money from ads, among other revenue streams, creators have had to hustle on their own to make money through independent brand deals, merchandise, podcasts and other outside-the-box methods.
"So many platforms didn't want to open up monetization to creators because they don't want to admit that the creators are the business drivers," said Karyn Spencer, CMO of influencer marketing platform Whalar.