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Instagram has announced the expansion of its content monetization feature called ‘Gifts’ to more creators across the United States. Instagram Gifts, which the platform first began testing last year, gives fans the opportunity to provide direct monetary support to their favorite creators in the form of virtual gifts.

This move will give Instagram an edge over rivals like TikTok, which already offer similar tipping features. Moreover, it also opens a new revenue stream for the company beyond advertising. Instagram creators have to share a portion of their revenue with the platform.

Instagram head Adam Mosseri shared his excitement about the expansion in a post where he called Gifts a way for “people to show love to creators.”

How it Works

Users can purchase virtual gifts on Instagram using the virtual currency ‘Stars.’ These gifts can range from 10 stars to several hundred stars. Currently, the cost for 45 stars is $0.99, for 140 stars is $2.99, and for 300 stars is $5.99. Users can buy these stars directly on the app as in-app purchases.

Instagram first publicly introduced its Reels tipping feature in November under the name “content appreciation.” The company has also developed other in-app tipping features, such as the ability to send Stars to creators and the launch of Badges in 2020. Badges were aimed at live videos only. Similarly, Gifts, as of now, remain Reels-only.

Who is Eligible?

Creators in the United States can check if they are eligible to receive Gifts from their Professional Dashboard in the settings. If they are eligible, they can choose to toggle on the option. This new feature provides a way for creators to earn more income and for fans to show their support directly.

However, even this expansion is still only applicable to certain Instagram accounts. The feature is not yet available to all users, but Meta hopes to offer it to many more people “soon.”

Instagram’s expansion of the Gifts feature is a significant step in its efforts to better compete against rivals and open up new revenue streams — both for creators and itself. With this updated interaction, creators can earn more income and gain a new level of interaction with followers. The new feature is exciting for creators and fans alike, and it’ll be interesting to see how it evolves. In essence, Gifts are a positive development for all parties involved.

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