Instagram is creating its own NFT marketplace – what it means for creators and brands

With its eyes on a web3 future, Meta has been looking for new ways to develop its well-known platforms. On Instagram, it has discovered a synergy between the visually driven social media brand and the world of NFTs (non-fungible tokens). After all, the rise of NFTs has been intertwined with the art sphere.

While this news marks an exciting new direction for the platform, it is still relatively early in this journey. So what does this announcement mean for creators, and how can brands and marketers get in on the action? Alexandra Edmonds, Product Marketing Manager for Creator Blockchain Experiences, Instagram shares the vision for Insta’s NFT-powered future.

LBB> Regarding the latest development, the ability to not only display NFTs, but to create and sell them via Instagram, why was that a priority for the platform?

Alexandra> Every day, creators on Instagram inspire people and push culture forward around the world by producing original work, building new communities and strengthening connections with their closest fans. NFTs enable creators to do all of these things while giving them more control and helping them monetize. Given the amount of creativity we see every day on the platform, we think Instagram is the perfect place to start.

By introducing NFTs to our platforms in ways that make them easier to use, we’re opening up new opportunities for people to connect with and support their favorite creators. In turn, creators can provide the community with more ways to support them. With the new features, we are currently testing with a small group in the US, where creators can create and then sell digital collectibles to fans wherever they are – whether on or off Instagram.

While the metaverse is still in its infancy, technologies like NFTs are already offering new ways to create value and connect with others, and we believe even more opportunities will emerge as we continue to build for the future.

LBB> What will make Instagram’s NFT/collector space different from other NFT coining sites and marketplaces?

Alexandra> On Meta’s platforms, millions of creators are already expressing themselves creatively and building fan communities. The expansion of NFTs gives creators a chance to engage their already established communities, while also making it easier for new audiences to enter the digital collectible space.

What the new features I mentioned add up to is an end-to-end toolset for creators – from creating and showcasing, to selling digital collectibles. Creators will be able to experiment with digital collectibles using intuitive mobile-first creation tools. Fans can easily support their favorite creators on Instagram by using a credit or debit card to purchase collectibles. This is an area that is still new to so many, and what we hope to add to the ecosystem is to make it accessible, understandable and enable creators to demonstrate its potential to new audiences.

Alexandra Edmonds

LBB> What does it mean for creators and artists on the platform?

Alexandra> We want to empower creators to do what they do best – whether it’s creating original art, building new experiences or connecting with their communities. NFTs and blockchain technology enable creators to do just that, while giving them more control over their work, more independence, and more ways to make a living from their passions and talents.

NFTs also give creators the opportunity to experiment with entirely new forms of creative expression and immersive storytelling through experiences enabled by AR technology. We’re really excited to see the creativity that comes out of this innovation, as we’ve already seen such inspiring work in so many areas – across generative art, photography, fashion, sports, entertainment – ​​the list goes on! With the intuitive and accessible tools we are now testing, we want to make it possible for more and more creators to experiment in this space and drive the culture forward in new and exciting ways.

LBB> From Instagram’s point of view, what is the business case for doing this? Will it be a revenue generator, or is it about attracting new types of users to the platform?

Alexandra> At Meta, we know that creators are the lifeblood of our platform. We are constantly looking for new ways to support them and the communities they build on. We explore blockchain technologies, like NFTs, because we believe they will expand access, empower and accelerate innovation for creators, businesses and people around the world.

There are no fees associated with sharing digital collectibles on Instagram. Meta will not charge fees to create or sell digital collectibles until 2024 (although in-app purchases are still subject to app store fees), and at launch we will cover blockchain fees (known as “gas fees”) for buyers.

LBB> Will this capacity to create and sell NFTs be available to brands/advertisers on the platform?

Alexandra> We hope to expand the ability to create, buy and sell digital collectibles directly on Instagram to more people in the coming months.

LBB> More generally, what else should brands/advertisers know about NFTs on Instagram? Where do you see this fitting in with the brands’ own web3 strategies?

Alexandra> It’s early days, but we hope that with digital collectibles, businesses and creators will have the power to create meaningful connections with their communities or customers. By creating digital goods that people can browse, buy, sell and share, both creators and brands will be able to inspire completely new forms of commerce.

LBB> What is the long term vision for NFTs/digital collectibles and Instagram?

Alexandra> We are at the beginning of our digital collectibles journey, which means we are testing, iterating and listening to feedback. Digital collectibles already offer new ways to create value and connect with others, and we believe that even more opportunities will emerge as we continue to build for the future.

LBB> Instagram has been testing its various NFT tools with small groups of creators – what have been some of the interesting or surprising insights you’ve come across in these pilots?

Alexandra> Since testing features to create and sell digital collectibles started in early November, we have been so inspired by the creators who have created such unique works of art and found support from fans on Instagram. We partnered with many creators to test these new features that sold out their digital collectible collections in minutes! The reception from their communities has been overwhelmingly positive, testament to the role digital collectibles can play in enabling creators and their fans to build even more meaningful connections.