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Monetization via subscriptions limits digital audio ad slots. The relatively low ad spend reflects, in part, limited inventory. Audio subscriptions will account for 63.0% of digital audio revenues in 2024. Even when taking time spent into consideration, audio advertising remains low. Digital audio will earn 5 cents per user hour in 2024, compared with 8 cents for radio and 21 cents for TV.

As the competition for creative talent intensifies, such innovative features are likely to set new standards for content monetization and creator-audience interaction.

Despite AI鈥檚 buzz, that鈥檚 a challenging prospect: Monetization has lagged behind AI development, and Meta has already run into notable content moderation issues involving the tech.

Different types of games use different methods of monetization. Mobile will offer more monetization opportunities than console or desktop/laptop gaming, such as interstitial ads, brand marketing via in-game events, and branded goods. In contrast, console and PC gaming rely largely on subscriptions and discrete purchases.

Other activities, like direct messaging, gaming, or livestreaming, have lower monetization potential but can help platforms boost time spent among Gen Zers. Platforms that can win more Gen Z loyalty in these areas stand to benefit from greater usage time. Key Takeaway: Our research shows that Gen Zers use multiple platforms for key social media activities.

Its Q1 earnings beat estimates due to its ad performance, but the company lost $200 billion in market cap Wednesday due to spending billions on AI investments with sparse monetization plans for the technology. Meta is focusing on developing open-source AI models and weaving AI into its products and services, including its ad platform. Yet such moves don鈥檛 generate direct revenues from the technology.

Meta鈥檚 powerhouse ad platform also gives it a leg up in monetization as genAI search advertising gains steam. Meta is a staple in most marketers鈥� ad strategies and will account for 22.8% of worldwide digital ad spending in 2024, per our forecast. Both Facebook and Instagram already offer some search ad placements, while WhatsApp monetizes via business messaging tools.

YouTube鈥檚 struggle with monetization is real, as it will only draw $0.13 per hour of time spent per person this year. Marketers know YouTube鈥檚 reach is unmatched, but neither Google nor its advertising partners have unlocked its potential yet. What does it all mean?

The strategy of diverting users from Instagram, a platform devoid of ads and with decreasing marketer engagement, to Threads, which currently lacks monetization, raises questions. If Instagram ratchets up its use of this feature, it could be potentially detrimental to the platform鈥檚 user experience, especially without immediate financial returns.

Earlier in June, Facebook introduced new features to streamline content creation and enhance monetization for creators, including an Inspiration Hub for content ideas, a Templates Hub for creating reels, Professional Mode features, and a lowered threshold for eligibility in the Stars program. Victory for TikTok with creators in the long term isn鈥檛 a given.

鈥淵es, they have a higher level of complexity because they must balance the customer experience with monetization, but they鈥檙e really excited about the opportunity because the revenue potential is obvious.鈥�. Brands, however, are a little harder to convince, said Nickell. Most of the momentum from brands exploring in-store retail media has come from brands outside of the CPG category.

Leaning into data monetization can bring in bigger revenues. This service can also strengthen brand loyalty to Klarna and increase customer engagement going forward. This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 three-times-weekly recap of top stories reshaping the payments industry.

Our take: The industry's tilt toward ad-free versions emphasizes the importance of user experience and data privacy in today's digital era鈥攁nd could also herald an evolution in social media monetization. For users, the proposition of paying for previously free services may be a hard pill to swallow.

However, market saturation is raising barriers, complicating Gen Z鈥檚 journey to success and content monetization in the dynamic influencer realm. While meant to complement human creators initially, these virtual influencers could eventually compete with real influencers for ad deals and sponsorships.

Monetization plans: Brands can currently get involved by hosting their own paid challenges and creating content for Zigazoo. Many of the upcoming monetization strategies Ringelstein pointed to are in line with what we predicted new social apps would take this year in our 2023 Social Media Trends to Watch report.

Yes, but: Investment in the creator economy is reportedly slowing, and the social platforms are streamlining or shuttering some of their initiatives as they bring creator monetization in-house and refocus on products that directly relate to driving ad revenue. While the creator economy is clearly alive and well, it鈥檚 not immune to today鈥檚 economic reality.

The platform鈥檚 improved search ranking system provides better relevance and monetization, including looking at ad performance more holistically rather than at one specific ad.

The big takeaway: Meta needs to balance user experience with monetization, and this update鈥攏ot to mention its new Instagram ad placements鈥攎akes that balancing act even more critical. A spokesperson said the company is closely monitoring users' sentiment, both for ads and overall commerciality.

Platforms host audiences and provide content creation and monetization tools. In return, creators generate more engagement, which helps attract advertisers. Marketers also support the platforms鈥� ad businesses. Brands regularly boost creator content as paid social ads. Agencies facilitate brand-creator relationships.

Our take: Snapchat+ has had surprising growth in just one year, showing potential for messaging app monetization. Generative AI for images and text has proven to be a helpful feature for boosting revenues and also shows that there鈥檚 strong user interest in AI as an entertainment outlet.

Here鈥檚 what marketers should consider about Threads monetization. 1. Ads are likely鈥攖he when, what, and how are uncertain. 鈥淚f we are successful, if we make something that lots of people love and keep using, we will, I鈥檓 sure, monetize it. And I would be confident that the business model will be ads,鈥� Instagram鈥檚 head Adam Mosseri told The Verge.

Yet the effectiveness of this strategy鈥攂oth from a user experience and a monetization perspective鈥攔emains to be seen. The integration of ads into AI chat experiences is still in its experimental stage, and it's critical for Google and other tech giants to strike a balance between monetizing their platforms and ensuring a seamless, enjoyable user experience.

In September, Meta claimed it had no plans to use WhatsApp as an advertising vehicle, but didn鈥檛 rule out other avenues of monetization. 鈥淲hatsApp is going to be certainly a part of [Meta鈥檚] monetization ecosystem in the year to come,鈥� our analyst Jeremy Goldman said. 鈥淭hat鈥檚 something that Mark Zuckerberg has talked a decent amount about.鈥�.

And privacy concerns over Threads鈥� data collection policies could hamper Meta鈥檚 monetization efforts. Threads could increase engagement on Meta鈥檚 platforms. Twitter and Instagram have plenty of user overlap. Roughly 57% of US Instagram users used Twitter as of June 2022, just a few months before Musk鈥檚 takeover, per our US Digital Trust Benchmark survey.

Open banking technology can also power buy now, pay later (BNPL) solutions鈥攁 growing threat to card volume鈥攁nd add data monetization opportunities. Expanding beyond traditional payments paves the way for networks to move further into services as an additional revenue generator.