Facebook CEO, Mark Zuckerberg, on Tuesday, announced new features that will open up new revenue streams for Instagram creators. The slew of features includes a creator marketplace where brands can pick and choose creators who connect better with their brand's target audience. There will also be an improved influencer marketplace to connect users and brands.
Adam Mosseri, Head of Instagram, said that many creators already rely on sponsored posts from brands to make a living on the platform but the marketplace will be a way for Instagram to help brands and creators find each other more easily, a CNBC report mentioned.
Zuckerberg and Mosseri made their announcement over a video broadcast on Instagram Live together.
"We should be able to help brands find creators that are uniquely aligned with the work they’re trying to do and vice versa,” Mosseri said.
The announcement comes just a day after Apple launched its new iOS 14.5 update with tracking transparency changes, something that will make advertising to iOS users much harder. The changes in the privacy feature are reportedly to cost Facebook over $8 billion in the next 12 months.
Instead of fighting the change, Facebook is choosing to adapt by bringing more commerce and sales directly to its social media platforms. This can allow Facebook to still deliver personalised advertisements to users and entice advertisers.
To bring more commerce directly to its platforms, Zuckerberg had last year announced the introduction of Facebook Shops and Instagram Shops. These features allowed businesses to directly sell to users of the platforms.
On Tuesday, Zuckerberg also announced the introduction of creator shops, a new feature, will allow Instagram creators to directly sell to their social media network.
"That’s been especially important in the last year. A lot of physical stores have had to close during lockdown but online stays open. It can be a more personalized and convenient experience", Zuckerberg said during Instagram Live.
Another new feature that was unveiled was the affiliate marketplace through which creators can get a percentage of sales for each product that they recommend on their page.
Zuckerberg said, "People look to creators for recommendations about what’s good, especially in the places that they’re the experts on."
Instagram has not released a timeline of when these features are expected to roll out.