Instagram Creating Marketplace To Connect Brands With Influencers
Facebook Inc.’s Instagram is creating a marketplace on its social media platform so that brands can connect with influencers they may want to pay to promote their products.
Facebook Chief Executive Officer Mark Zuckerberg and Instagram head Adam Mosseri announced the new marketplace Tuesday in a live video on Instagram.
“Branded content is the economic engine behind the creator ecosystem,” Mosseri said. “Matchmaking is something we can add a lot of value for.”
For years, Instagram has been careful to avoid directly involving itself in brand partnerships that occur with its users, not wanting the app to become too commercial.
As a result, deals have taken on a life of their own, off the books, so to speak. Individuals on Instagram with a high following – and therefore the power to ‘influence’ – often get contacted by brands by email or Instagram direct message, asking them to promote products to their fans in exchange for free products or money.
That has resulted in an opaque system, where the prices paid for similar kinds of promoted posts vary greatly, Mosseri said.
With all of this money flying around on Instagram’s own turf, while it essentially plays the silent host, the tech company might be creating this marketplace in an effort to moderate pricing.
Brand-influencer partnerships are forged on the social media platform while managing to bypass Instagram altogether, merely using the platform as a way to find each other, and then to post the sponsored content.
Now that Instagram is introducing a marketplace for ‘matchmaking’, it’s not out of the realm of possibility that the tech company might take a cut for partnership profits born of using this meeting tool.
It’s yet unknown exactly how the marketplace will work, with the company keeping details to itself for now.
What we can deduce though, is that the photo- and video-sharing app is creating new initiatives to try to help people make money on its platform. And maybe get in on the action itself.