Instagram Expands Virtual Gifting To All U.S. Creators

Source: Instagram

Instagram expanded Gifts to all creators in the U.S. Initially launched in November, it allows fans to send virtual gifts to Reels creators to show their appreciation. To do so, users must purchase Stars, Instagram's virtual currency, available in various price packages, and then send Gifts to creators through a 'Send Gift' button on eligible Reels. Instagram will do a revenue share with creators for the Gifts they receive monthly, equalling $0.1 USD for every Star. To receive a payout, creators must reach a $100 balance across monetization programs.

Instagram continues to build out its monetization features for Reels slowly. Adding to the Reels Play Bonus Program, more creators can make money off their short-form videos, this time directly through fan support. The revenue creators can generate from Gifts will depend on the uptake of Stars, as everyday social media users purchasing virtual currency and tipping creators is currently a rare practice in the U.S.