Facebook and Instagram to bait creators with $1bn fund and monetization options

Content is king

• Facebook is already building creative and monetization tools to encourage engagement, but is now stumping up cash to seed a new generation of content creators.

• These include ad revenue streams from services such as in-stream and IGTV ads, as well as fan functionality such as badges, stars, fan subscriptions and paid online events.

• Creators may also partner with brands via branded content and affiliate options, and take advantage of creator shopping tools.

• Now the new investment will ensure eligible creators are rewarded directly for reaching agreed milestones when using these tools, with a proportion of the cash also earmarked to directly fund content.

• Bonuses will be paid out for posts that generate the greatest ‘joy’ among users, establishing a positive feedback loop that encourages creators to pump out proven material to grow and monetize their work.

How do I get my hands on Facebook’s dollars?

• Until now invitation-only financial rewards have been made available to select creators, but this process will now be democratized with a dedicated bonus portal for creators to join.

• Facebook users can sign up by visiting the Monetization Tools area on Facebook for creators, while their counterparts on Instagram can do so by visiting the bonuses section of the app over the coming weeks.

• Launching on the Instagram app this summer, followed by Facebook in the autumn, the funding bonanza will include further unspecified programs to launch before the end of the year.

• Invited Facebook creators can tap this cash already in one of two ways, either as a bonus paid over the next four months for using in-stream ads, or a stars bonus for selected gaming creators who hit defined milestones over the next three months.

• Facebook is regarded as a credible competitor to TV by some, thanks to the rapid growth of its in-stream ads.

• Instagram users have more financial avenues to explore, with invited US creators able to claim a one-time bonus for signing up for IGTV ads. International members aren’t left out, with creators in 11 countries able to claim rewards for meeting specific milestones with badges, such as going Live with another account – again, by invitation only for the time being.

• Lastly, a performance-based summer bonus (available to US creators by invitation over the coming weeks) will be paid out for the best Reels content.

How will the cash be divvied out?

• Facebook has pledged to be as transparent as possible in making its funding awards, setting out three guiding principles to inform bonus decisions.

• These see it prioritize original and high-quality content above all else, with mechanisms built in to support creators of all sizes in earning their crust. The social giant has also pledged to keep members updated with simple and actionable requirements they can follow to boost their income.

What does Facebook say?

• Posting the news on Facebook, chief exec Mark Zuckerberg wrote: “We want to build the best platforms for millions of creators to make a living, so we’re creating new programs to invest over $1bn to reward creators for great content they create on Facebook and Instagram through 2022. Investing in creators isn’t new for us, but I’m excited to expand this work over time.”

• Facebook has pledged to divulge more details on individual programs such as eligibility and the application process in due course.