Facebook and Instagram will invest over $1 bn in content creators

Social media network Facebook will spend $1 billion on social media creators through the end of 2022.
Facebook for SMEFacebook’s investments will include bonus programs to pay creators who hit certain milestones on its apps, including photo-sharing service Instagram, and fund users to produce content.

The social media giant is opening its wallet to woo creators with major fan followings from platforms like Alphabet’s YouTube and short video app TikTok.

Multiple major tech platforms are on the offensive to attract and keep social media personalities with new payments and services.

TikTok has committed to spending $2 billion to support creators over three years. Snapchat used to pay creators a total of $1 million per day to post popular short-form videos on its service and says it still distributes millions per month to support creators through its Spotlight program.

Facebook said its bonuses so far are by invitation only. On its main platform video creators and online gamers will receive a monthly bonus if they hit milestones like broadcasting a certain number of hours to earn Stars, a form of digital tipping that fans can use to pay their favorite creators during live-streamed videos.

Instagram said its bonus programs will include incentives to use Reels, its copycat TikTok feature that showcases short-form video clips. Creators will earn money based on how their Reels videos perform, the company said.