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    Home»Technology»App»X Shifts Creator Payouts to Focus on Engagement Over Ad Revenue
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    X Shifts Creator Payouts to Focus on Engagement Over Ad Revenue

    October 11, 20243 Mins Read
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    As X continues to face challenges with advertisers and recently even filed a lawsuit against a group for its advertising boycott, the platform is now making significant changes to its payment structure for creators. Previously, creators earned a portion of the ad revenue generated from ads displayed in their post replies. Now, however, X has announced it will compensate creators based on the level of engagement they receive from Premium users on the platform, moving away from an ad-driven model.

    This adjustment means that creators will benefit from posts that spark interaction, potentially changing the types of posts that gain traction on X. Historically, when platforms begin to reward engagement, creators tend to focus on content designed to drive conversations, sometimes even sparking debates or controversial discussions to encourage user replies and comments.

    Interestingly, X’s competitor Instagram Threads is already grappling with a similar issue, often referred to as “rage bait,” where creators post content aimed at generating heated discussions. This approach can lead to more comments, which, in turn, boosts the visibility of those posts in users’ feeds. Instagram’s head, Adam Mosseri, recently acknowledged the problem, saying Threads had seen an increase in “engagement-bait” posts and that they were working on solutions to control this trend.

    In contrast, X’s new policy may encourage creators to maximize replies and comments without putting limits on engagement-focused posts. In its announcement, X did not address any plans to manage or limit this type of content, instead suggesting that this payment model offers creators a chance to earn more as Premium subscriptions grow.

    “The more Premium subscriptions overall, the more revenue you can earn,” stated X in its announcement.

    Though X didn’t clarify if the exact payout percentage would change, the company hinted that creator earnings could rise as they generate more engagement, now that payments are no longer ad-based. This shift could provide a solution to creators who experienced a revenue dip when X lost advertisers and when Premium subscribers on higher tiers began seeing fewer or even no ads.

    To qualify for monetization on X, creators still need to be Verified subscribers with at least 500 Premium followers and 5 million post impressions in the last 90 days. However, these requirements have already led to a rise in engagement-centric posts designed to attract attention, affecting the nature of content and discussions on X. The platform imposes few restrictions beyond those on spam, illegal content, and certain promotions.

    As X heads into the upcoming U.S. election season with this new payout model, it’s possible the platform will see more politically charged, engagement-seeking content, including AI-generated deepfakes and misinformation, as creators vie for attention and maximize revenue.

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