Instagram head Adam Mosseri stated that the platform's current performance-based creator payment model is ROI negative and unsustainable for long-form video. The company is currently evaluating alternative monetization strategies for its new 90-minute video upload feature to avoid user friction associated with traditional pre-roll and mid-roll advertising.
Instagram's admission that performance-based payments are unsustainable signals a strategic shift away from direct platform subsidies toward brand-led monetization. By testing 90-minute uploads without a clear revenue-share model, Meta risks creator churn to YouTube, which offers established mid-roll infrastructure. The platform's reluctance to implement traditional ad breaks suggests a prioritization of user retention over immediate creator payouts, potentially limiting the appeal of its long-form expansion. This tension highlights the difficulty of porting short-form engagement models into the high-overhead world of long-form streaming. Watch for the results of Instagram's bespoke funding deals to see if they can bootstrap a viable ecosystem without traditional ad-insertion tools.
Instagram head Adam Mosseri has declared current performance-based creator payment programs ROI negative and unsustainable. The platform is currently testing 90-minute video uploads to compete with YouTube but remains hesitant to implement traditional ad breaks. This shift suggests a strategic move away from direct subsidies toward brand-led monetization for creators.
Mosseri states that the platform spends significantly more on performance-based bonuses than it earns back, noting that these payments often fail to drive incremental high-quality content.
Instagram is currently avoiding pre-roll and mid-roll ads to prevent user friction, despite their potential for revenue sharing.
Instagram is testing 90-minute video uploads and a new Apple TV app in the United States.
The platform is signaling a strategic shift away from direct platform subsidies toward brand-led monetization for creators.
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