Facebook will pay $1 billion to social media stars who use its apps in the next year and a half. This is the latest salvo of a growing battle between Facebook and its competitors to win over influencers.
The company will distribute the funds through shared advertising revenue and bonuses for using Instagram and Facebook. In some cases, Facebook may offer seed funding to creators who wish to establish their presence on these sites.
In a Facebook post, CEO Mark Zuckerberg stated, “We want the best platforms for millions of creators to make their living.” “Investing in creators doesn’t seem new to us, but I’m eager to expand this work over the years.”
Social media companies have refocused their attention on influencers responsible for bringing in millions of users daily. Facebook announced several initiatives, including the ability for fans to raise money and the tools to sell branded merchandise. Facebook is only one of many runners in a very competitive race. To provide influencers with better opportunities to make money, TikTok and Snap are working on similar projects.
Many platforms will take some of the earnings from the influencers. However, it is possible that this may not be the case for many years. This new revenue stream will likely not be significant for Facebook, generating $86 billion in revenue last fiscal year. Facebook and other social media giants need to ensure that these influencers remain on their platforms to attract users. Without these users, Facebook can’t sell the ads that are the company’s lifeblood.