Virtual gifting on Instagram for U.S-based Reels creators was launched in February, which saw a relatively good reception. Because of the option’s growing popularity, users in more regions can look forward to an Instagram Reels Gifts expansion. These users are eligible to receive gifts in the app through a dedicated button in their clips.
Gifts provide another revenue generation option for Reels creators, with sticker-type gifts available in varying purchase amounts. Over the following weeks, the Instagram Reels Gifts expansion will make these options available in more regions. Eligible creators will have a ‘Send Gift’ option appear as an overlay on their Reels clips.
Using that, viewers can send gifts to creators of varying cash amounts. Users pay for gifts in Stars – Meta’s unique in-app currency. For now, Gifts are priced between $0.99 – $5.99. As per Instagram:
“Gifts on Instagram allow you to show appreciation to eligible Reels creators by sending virtual gifts. When you buy stars to send gifts to creators, those creators may earn money if they have agreed to Instagram’s Gifts Terms of Service.”
Just how much money are we talking about here?
“Viewers can purchase stars and use them to send you gifts on Instagram. Instagram will then provide you with a revenue share from your reels that received gifts on a monthly basis equal to $.01 USD for every star received from fans.”
Simplifying, a creator who receives a gift worth 100 Stars gets an equivalent of $1. While that may not be a large amount, it does add up, which could benefit big accounts with large followings. However, there are conditions and limits.
Creators are only eligible for a payout when their total balance reaches $25. However, that does also include earnings from Instagram’s other monetization programs. Users must also have a connected account to receive payouts, or Meta simply keeps the money. Users have 6 months to activate a connected account. Meanwhile, to receive Stars, creators need to have more than 5,000 followers in the app, along with a Professional Account. Users must also be over 18, and in accordance with Instagram’s monetization terms.
If you meet these requirements and reside in any of these regions, you’ll soon have another way to earn from your Reels. While it is unlikely to be a game-changer for most, it is something to consider. At the very least, it does add an extra way to help keep top users posting in the app.
With the current NPC trend gaining traction in live streams, creators are becoming increasingly aware of the potential. Meta might need to up the value of Stickers to make the option highly effective in this respect. This Instagram Reels Gifts expansion could be the first step towards expanding in-app incentives for creators.