16th July 2021
POV: Facebook Creator Bonuses and the End of Fleets
Background:
This week Facebook announced the launch of new bonus programs designed to keep creators in its ecosystem. At the same time, Twitter was announcing the end of one of it its own creator focused offerings – Fleets.
Details and Implications:
Facebook announced via a Facebook post by Mark Zuckerberg that the platform is investing more than $1 billion globally in creators from now until the end of 2022.
Instagram plans to allocate the funds through a ‘bonus’ program for creators which will start off as invite only. The program aims to reward creators for hitting certain milestones with their content, helping to fund new content and to provide a better understanding of what content performs best. In addition to the creator fund there will be a dedicated place on both Instagram and Facebook where creators can understand and learn how the bonuses work and how they can take part in the programs.
One of the major areas of focus will be Reels, the short-form video content that mimics the popular content on TikTok. Very soon, the Reels Summer bonus will be launched in the US which will allow creators to earn up to $500 by the end of July by creating Reels that are played up to 200,000 times.
There are other bonus programs available; an IGTV ads bonus where creators earn by signing up for IGTV ads; additional bonuses for badges in Live; expanded bonuses through Stars which invites viewers to send streamers tips in exchange for fan perks; and bonuses for creators using in-stream ads. The latter will be the first to launch.
The bonus program hopes to encourage creators to continue creating high quality and engaging content within Facebook’s own ecosystem which will in turn keep users on the platform and away from competitor platforms.
Whilst Facebook is incentivizing creators by providing more opportunities for them to earn income, Twitter is getting rid of one of its creator-focused features, Fleets, from the 3rd August. The feature, an ephemeral story format, has been around for less than a year and is quickly being removed from the platform due to lack of take up.
Twitter has alluded to other products coming soon that could replace Fleets but hasn’t given any specific details on what these could be, only saying: "We'll be rigorous, evaluate what works, and know when to move on and focus elsewhere. If we're not evolving our approach and winding down features every once in a while - we're not taking big enough chances.”
Summary:
Facebook is incentivizing creators to ensure users stay within its ecosystem and to make sure it doesn’t lose creators to newer platforms like TikTok. Time will tell if $1bn is enough of an incentive. Twitter meanwhile is once again having a rethink.