Tweet by John Hu
Facebook announced that it’s paying out $1BN to Creators.
Should TikTok🎵, Snap👻, & YouTube📺 be worried?
A quick thread on how FB shakes up the Creator Economy👇
FB announced “Reels Summer Bonus, “ a knock-off of TikTok’s Creator Fund and Snap’s Spotlight.
Creators will get paid for views on Reels.
However, I think YouTube CPMs remain king👑
The delta in CPMs (cents on TT/IG vs dollars on YT) isn’t even close. 💰
FB also announced a way for Creators to link their shops directly in-app.
FB’s Goal? Facilitate in-app commerce.
I’d still look to TikTok (specifically, its Chinese Douyin roots) to lead the way here.
Creators can now also partner with IG’s marketplace of brands.
I’m most interested in the implications this has on 3rd party Affiliate services like LIKEtoKNOWit and Rakuten that are “out-of-app.”
How will they pivot their business as the platforms facilitate transactions? FB also announced its take on OnlyFans, but for IG.
Think of it as paying to be in a Close Friend Story circle.
Unless IG plans to allow for Adult content (hint: it won’t), this may go the way of Fleets. ☠️ FB entering the Creator Economy is a net positive for Creators.
But Zuck has too much legacy baggage to build a Creator-first platform.
FB/IG are on their way out for Gen Z/Millenials.
I’d continue to look to TikTok and YouTube to lead the way. If you want to stay up-to-date on the Creator Economy, follow me for my weekly learnings:
🎵 Growing my TikTok account (40k+)
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