In a surprising move, X announced today that it is lowering the eligibility threshold for its ADs revenue sharing program. This means that more creators will be able to monetize their content on the platform and earn a share of the advertising revenue generated by their videos.
Now, even more people can get paid to post!
We’ve lowered the eligibility threshold for ads revenue sharing from 15M to 5M impressions within the last 3 months. We’ve also lowered the minimum payout threshold from $50 to $10.
Sign up for a Premium subscription to get access.
— Support (@Support) August 10, 2023
Previously, the eligibility criteria for the program required creators to have at least 1,000 subscribers and 4,000 hours of watch time in the past 12 months. Now, the new threshold is only 500 followers, must have subscribed to X Blue platform with a minimum of 5 million impression over three months and 2,000 hours of watch time. This change will take effect on September 1, 2023.
According to X, this decision was made to support the growth and diversity of its creator community, especially in emerging markets where access to digital tools and opportunities is limited. X also said that it wants to reward creators who produce high-quality and engaging content that attracts and retains viewers.
The ADs revenue sharing program allows creators to earn money from ads that are displayed before, during, or after their videos. The amount of revenue depends on various factors, such as the type, length, and placement of the ads, as well as the viewer’s location, device, and preferences. X takes a cut of 45% of the ad revenue, while the remaining 55% goes to the creator.
The main benefit of X ADs Revenue Sharing is that you get to keep 80% of the revenue generated by your ads, while X ADs only takes 20%. This is much higher than the industry average, which is usually around 50% or less. This means that you can earn more money from your content and invest it back into your business. You can also benefit from X ADs’ network of publishers and advertisers, who can help you grow your audience and exposure.
The program is one of the main sources of income for many creators on X, especially those who have large and loyal audiences. However, it is also a source of controversy, as X has been accused of unfairly demonetizing or removing videos that violate its community guidelines or advertiser-friendly policies. Some creators have also complained about the lack of transparency and consistency in X’s decisions regarding monetization.
By lowering the eligibility threshold, X hopes to attract more creators to its platform and encourage them to produce more and better content. However, it also means that X will have to deal with more videos that may not meet its standards or expectations. It remains to be seen how X will balance its interests with those of its creators and advertisers.
Firstly, let’s look at the benefits of this partnership with creators on Twitter now X. For X, it can leverage Twitter’s large user base and social network to gain exposure and attract more creators and viewers. It can also benefit from Twitter’s expertise in content moderation and advertising technology. For Twitter, it can diversify its revenue stream and offer more engaging content to its users. It can also tap into the growing market of short video entertainment, which is dominated by TikTok.
However, there are also some challenges and risks involved in this partnership. For X, it has to share a significant portion of its revenue with Twitter X Blue subscribers, which may limit its profitability and growth potential. It also has to compete with other platforms that offer similar or better features and incentives for creators and viewers, such as YouTube Shorts, Instagram Reels, and Snapchat Spotlight.
For Twitter, it has to invest in the infrastructure and resources to support X’s video hosting and streaming, which may increase its costs and complexity. It also has to deal with the legal and ethical issues that may arise from the content and ads that appear on X’s videos, such as copyright infringement, misinformation, hate speech, and privacy violations.
X-Twitter ADs Revenue Sharing is not a sustainable business model in the long run. It may generate some short-term benefits for both parties, but it also exposes them to many uncertainties and challenges that may outweigh the advantages. I suggest that X should explore other ways to monetize its platform, such as subscriptions, donations, or branded content. I also suggest that Twitter should focus on improving its own core features and services, such as live audio, newsletters, and e-commerce.
