Instagram Wants to Lure TikTok Creators with Hefty Monthly Bonuses

Meta Platforms (META) wants to lure TikTok creators to Instagram Reels by taking advantage of the uncertainty surrounding its rival following the U.S. Supreme Court upholding the app’s ban. While President Donald Trump has extended TikTok’s service in the U.S. by 75 days, it comes with the stipulation that the company must split to a 50-50 ownership model. TikTok parent company ByteDance doesn’t seem pleased with this requirement, leaving the app’s fate unknown.

This is where Instagram Reels enters the scene. The TikTok rival is offering cash bonuses to creators who post exclusive content on its platform first. These bonuses reportedly range from $10,000 to $50,000 a month, with some creators being offered more depending on various factors. That’s a tempting offer for content creators who recently suffered a scare when their livelihoods were threatened by the temporary TikTok ban on Sunday.

Will Instagram Reels’ Strategy Work?

This isn’t the first time Meta Platforms has sought to solve a problem by throwing money at it. Instagram offered similar bonuses to creators shortly after Reels launched. However, it eventually discontinued this perk.

Part of the problem with Instagram Reels is the age of its users. The social media platform continues to attract an older demographic than what’s on TikTok. This makes it hard to pull in new users outside that age bracket, limiting its growth with younger viewers. Maybe enough money can solve that issue, but it hasn’t worked in the past.

Is META Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Meta Platforms is Strong Buy based on 40 Buy, three Hold, and one Sell ratings over the last three months. With that comes an average price target of $689.12, a high of $811, and a low of $530. This represents a potential 12.46% upside for META shares.

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