IGTV ad revenue generation will begin in 2021 and media companies are turning ‘lukewarm’ towards the app

Instagram has finally decided to run video ads in IGTV videos and make it a source of ad revenue generation. However, there are media companies and agencies that have been waiting for two years to receive ad revenue from their IGTV videos. It seems that they will have to wait for another six months, until 2021.

Instagram also intends to share 55% of the resulting revenue with the creator of the IGTV video. But Facebook has recently informed media companies that the monetization program through ad videos in IGTV videos is still in the testing phase and is available for a selected number of video creators.

So, the money rolling is not expected until 2021 at least. They believe that many emerging video creators will also see the benefits of monetization in IGTV within this testing phase of the remaining year 2020. They even plan to test it with a greater number of accounts as they slowly and steadily roll it out.

In the beginning, Instagram will sell IGTV inventory for advertisers as a standalone option. But advertisers will pay for IGTV ads only when Instagram will be able to gather a large enough audience for them.

Although Instagram had not begun the monetization, yet some media companies and individual video creators kept making IGTV videos in hopes to get them monetized once Instagram turns the feature on by opening up a revenue-sharing program and for money through sponsored videos. They even managed to gather a fairly decent audience, with a steady and slightly increasing viewership also. But many other creators and media companies started turning towards other platforms like Facebook, YouTube, and Snapchat, which do share revenue.

So, it is natural for them to start losing their interest in Instagram ads in IGTV videos.

However, these media executives do believe that once Instagram starts placing ads in IGTV videos, the money will start rolling out for them eventually. It will be a late call, but it will be there.

Instagram’s ad placing strategy is going to be quite effective. These ads will be inserted only after users watch an IGTV video preview in their Insta feed. The preview is going to be 15 seconds long, and once it ends, people will have to click to watch the rest of the IGTV video, and that is when a 15 second long or slightly shorter ad will be placed.

Now, there are chances that these mid-roll ads may bore the audience, but they are most likely going to sit through them, just like they do while watching shows on TV that have ad breaks in between.

To make people continue watching the video and sit through the ads, the ad creators and media companies will have to edit the IGTV videos in such a way that they can hook the audience so they continue watching the whole video.

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