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JAKARTA - The Instagram monetization feature is now being expanded by presenting Gifts for more Reels creator content, similar to that of its competitor TikTok.

First piloted last year, fans can provide direct support to their favorite content creators in the form of themed virtual giveaways on Reels.

Gifts, can be purchased directly in the Instagram application using the in-app currency Meta, Stars. Users can purchase 45 Stars for USD 0.99, 140 Stars for USD 2.99 ​​or 300 Stars for USD 5.99.

Virtual Stickers

They can then use their virtual sticker as a donation tool to give money to their favorite creators. Creators must reach the $100 cashout threshold which may include earnings from other monetization programs, at which time they can convert Stars rewards into cash.

However, this feature has just been expanded to creators in the United States (US) and it is not yet known when it will be rolled out globally. Creators will be able to see if they are now eligible to receive Gifts from the Professional Dashboard in settings and can enable the option if they wish.

Instagram says Gifts will remain for Reels only for now. If available, users will see an option to Sent Gifts above the creator's username in Reels.

This is another way for creators and Reels creators in particular to make money on the app, which has become a major battleground for short-form video platforms, as each platform tries to figure out the best way to retain their top creators.

Reels' virtual monetization program could also encourage more content creators to dabble in the format, which is still Instagram's priority in its battle with TikTok.

During Q1 2022 earnings out earlier this month, Meta CEO Mark Zuckerberg said Reels video views on Facebook and Instagram more than doubled by 2022 and people sharing Reels with friends more than doubled across both apps in just six last month.

Meta predicts it won't be until the end of the year or next year that it will be able to grow Reels profitably while meeting consumer demand for the format.

While sending Stars is already available on live and on-demand video, including Reels, the addition of Gifts allows Instagram to better compete with competitors like TikTok, where virtual gifts are already available on the China-based app.

The feature also provides the company with another revenue stream beyond advertising, as Instagram's content creators must share a portion of the revenue they earn with the app. This was quoted from TechCrunch, Thursday, February 9.


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