Media platforms

Social media platforms fight for online talent

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But recently, they’ve found an easier source of income – making money directly from social media companies. The couple received a payment of nearly $ 30,000 from Snapchat from a single video they posted on the platform’s abbreviated video hub, Spotlight. They also earned smaller amounts from TikTok to be part of its Creators Fund, which pays social media influencers based on their number of video views.

“We love to create, but of course we’re going to look to the platform that makes us the most money,” Horwitz told CNN Business.

Creators are the lifeblood of any social media platform, driving trends and engagement and building a loyal community. But more and more, social media companies seem to be waking up to the reality that Horwitz describes: Creators can join a platform to build an audience, but ultimately the platform has to pay for it. ‘they stay. Over the past few months, big tech companies have stepped up to try and do just that, offering more and more ways for creators to make money on their platforms, both from advertising revenue from their content. and direct documents.

Snapchat pays out a total of $ 1 million per day to the users who make the most entertaining videos for rival TikTok Spotlight. TikTok launched a $ 200 million Creators Fund last year, which promises to reach hundreds of thousands of creators with plans to reach $ 1 billion over the next three years. Twitter recently announced that it is exploring the possibility of users becoming paid subscribers to their favorite Twitter accounts. And on Sunday, the audio-focused Clubhouse app announced a acceleration program aimed at helping budding creators build and monetize audiences.

These announcements reflect both the value of top platform content creators and the fact that there have never been so many opportunities for internet personalities to make direct money.

Social media is a war right now,” said Ben Ricciardi, founder of influencer marketing agency Times10. “Twitter is trying to find ways to bring in a growing audience. Snap is really pushing creators to try coming back to the platform or spending more time on the platform.”

Even the biggest social networks – Facebook and Facebook-owned Instagram, with over a billion monthly active users each – now find themselves competing for users and talent with newer services like TikTok, he said. -he declares.

Last week, Facebook announced that social media stars can now generate income from all types of videos, including just one-minute videos, and that it is testing new monetized ads in Stories. In recent years, the company has deployed other lucrative capabilities for creators, including generating income through the ads that appear on their videos, fan subscriptions that offer a recurring monthly payment and the ability for subscribers to send Virtual “stars” to their favorite designers to show them their support.

From 2019 to 2020, the number of content creators earning the equivalent of $ 10,000 per month increased 88% and creators earning $ 1,000 per month increased 94% on Facebook, according to the company. Facebook declined to provide specific numbers on how many creators earn these monthly amounts.

After having long resisted direct payment from influencers, Instagram announcement similar moves to Facebook last year, offering monetizable ads in its long-running IGTV video feature and digital badges that fans can purchase through Instagram Live.

Yoav Arnstein, director of product management at Facebook, told CNN Business that creators are “absolutely critical” for social media platforms. “Much of the innovation around creativity and content creation will come from the creators,” he said.

Collectively, these major social platform movements mark a major change in their approach to creators. With the exception of YouTube, which has long allowed influencers to make money from ads, among other sources of income, creators have had to fend for themselves to make money from independent brand offerings, merchandise, podcasts and other original activities. methods.

“So many platforms didn’t want to open up monetization for creators because they didn’t want to admit that creators are the engines of business,” said Karyn Spencer, CMO of Influencer Marketing Platform Whalar. “Now, in 2021, we’re finally at the point where every platform knows that in order to survive talent has to be paid for. ”

For influencers, this also looks like a change. Horwitz said that for years other people have contacted her and her husband to ask them how to make money as influencers.

“It just wasn’t very clear, you had to be your own businessman, make a website or a product or something and be so creative,” she said. “But now all platforms are saying it very clearly: create great content, get views and you get paid.”

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