Will Meta’s plan to woo TikTok creators with cash bonuses pay off?

The news comes after TikTok experienced a temporary blackout in the US as a law requiring ByteDance to divest its US assets or face a nationwide TikTok ban came into effect. However, after Donald Trump promised to combat the ban upon his return to the White House Monday, the app has since come back online in the US, though it remains unavailable in Apple and Google app stores, fueling speculation about its long-term stability.

This isn’t Meta’s first attempt to incentivize creators. In 2021, Instagram launched a Reels bonus program, but by 2023, payouts were scaled back, and the initiative was discontinued. The current push, however, represents a more aggressive and multifaceted approach, likely driven by the opportunity presented by TikTok’s legal woes.

In addition to the ‘Breakthrough Bonus’ program, Meta is rolling out a slate of Reels updates designed to make the video product more competitive with TikTok. The maximum video length for Reels has been extended from 90 seconds to three minutes, and Meta plans to make Reels more prominent across Instagram and Facebook.

Recommended Reels will be algorithmically prioritized in users’ home feeds and search results, while updated ranking algorithms aim to give newer creators better visibility. The company also updated Instagram to display vertical – rather than square – stills on users’ profiles, potentially in an effort to highlight Reels, which are usually filmed vertically.

Meta has also announced the upcoming launch of Edits, a video editing app designed to rival TikTok’s CapCut. The app will enable creators to produce polished content more efficiently, complementing Meta’s broader strategy to attract TikTok’s creator base.

Will creators bite?

Whether Meta’s bid for TikTok creators will work out in its favor remains an unanswered question. However, some industry experts believe that the new offerings – paired with the cash incentive – will entice some influx of activity on Reels.

“Many TikTok creators are actively seeking alternatives as [TikTok’s] future remains uncertain and cash bonuses are a major incentive to post on Instagram,” says Jasmine Enberg, vice-president and principal analyst at eMarketer specializing in social media. She predicts that the bonus program will be “a hard offer for most creators to resist” – despite the fact that many creators and brand partners are likely wary of Meta’s recent rollbacks on content moderation and fact-checking, which may invite more inflammatory speech and misinformation on to Instagram and Facebook.

Others agree that TikTok creators are likely to take Meta up on its offer.

“Many creators will take the money,” says Martin SFP Bryant, founder of the tech newsletter PreSeed Now and co-editor of the Geekout social media newsletter. “The past few days have illustrated in the starkest possible way that creators need to diversify the platforms they use. So these incentives could be a good way of helping them make that shift if they haven’t already.”

But neither Bryant nor other leaders in the social media and influencer space are betting that Meta will witness a monumental migration as a result of the ‘Breakthrough Bonus’ program.

For one, with TikTok’s fate yet undetermined, other platforms including Snapchat, X and others may attempt to capitalize on the moment. And in the days leading up to the brief ban, the US saw users flock en masse to Chinese-owned RedNote, a TikTok-meets-Pinterest type of app. If users migrate to another app, so too could creators.

Perhaps a more likely possibility is that users will cling to TikTok as long as they can – for more factors than just the cash.

“Financial incentives alone won’t drive long-term creator loyalty. The key challenge for Instagram isn’t just financial – it’s cultural. TikTok has succeeded because it’s become a safe space for unfiltered, authentic content,” says Jaeson Ma, CEO of Open, a so-called ‘super app’ that brings together messaging, commerce, visual content and more.

“Instagram, in contrast [to TikTok],“ Ma says, “has cultivated an environment where creators feel pressure to present a polished, perfect image. This fundamental difference in platform culture makes it difficult for creators to simply transfer their content style from TikTok to Reels.“

In spite of the draw of the bonus program, Ma doesn’t expect creators to pledge their allegiance to Meta platforms – so long as TikTok remains operational in the US.

And outside of the potential issues of splintered audiences and cultural relevance, the deal Meta is offering just isn’t that great, some say.

“TikTok creators are already posting on Meta, but the big issue is that their potential earnings on Meta are no way near as high as they are on TikTok – and $5,000 is unlikely to be enough to sweeten the deal,” says Monica Tailor, chief social marketing officer at IPG agency McCann.

It’s a prediction echoed by Kevin Kinder, social media director at Stagwell-owned creative agency Movers+Shakers. “While some creators may take advantage of the bonus, most will stick with platforms that provide sustained growth,” he says. “$5,000 over three months is a decent boost, but creators tend to think beyond short-term payouts. What they care about most is building a long-term audience, leveraging tools that make content creation easier and staying on platforms that remain culturally relevant.”

Meta’s ‘Breakthrough Bonus’ initiative is designed as a limited, three-month program – suggesting that the payments will likely be dialed back or cut altogether afterward. It could be another pitfall for creators.

“We’ve seen this before,” Kinder says. “Take Snapchat’s Spotlight program, which initially paid creators one million dollars a day. Within six months, they scaled back to monthly payouts. Meta’s approach feels familiar. It might create a temporary surge in Reels content, but when the bonuses dry up, creators will likely return to platforms that offer consistent opportunities and lasting momentum.”

Of course, the cash payments from Meta don’t represent creators’ sole opportunity for earning on Facebook and Instagram. Meta is also welcoming new creators to the Facebook Content Monetization program as part of its push.

Launched last October, the program brings the company’s various advertising offerings and performance-based monetary incentives under one umbrella, enabling creators to monetize various kinds of content on a regular basis. In the long run, it’s possible that the Facebook Content Monetization program rivals the TikTok Creator Fund, which helped many of the most popular TikTok influencers make a full-time living with their content.

While creators may make a move for the cash and begin posting more frequently on Instagram and Facebook Reels, they aren’t likely to find a perfect TikTok replacement soon, experts say, so they’ll spread their content across multiple platforms for now in an effort to expand both their reach and earnings potential.

“There’s still nothing out there quite like TikTok’s algorithm for matching new content with relevant audiences, so creators might have to adapt their publishing strategy as they diversify the platforms they use and learn what works best for each platform, rather than simply cross-posting everything,” says PreSeed Now’s Bryant.

For the creators who choose to dip their toes in the proverbial Reels water, whether they transform into loyalists will depend on a variety of factors. Their decision will hinge primarily on the degree to which they’re able to develop an audience – and generate a sustainable revenue stream, eMarketer’s Enberg predicts.

This latter element – sustainable revenues – won’t be produced solely by bonus payouts from Meta but will rely on paid ads and branded content deals.

The brand calculus: deepening diversification

So will the money follow? For most brands, Meta already captures a significant share of their advertising and marketing investment. Instagram is the leading platform for brand-creator partnerships today, used by over 80% of US marketers in 2024, according to estimates from eMarketer.

However, some aren’t confident that the new incentives will see brands pour even more money into Meta.

“Many wonder if advertisers will follow creators to Reels, but the reality is that most won’t,” says Movers+Shakers’ Kinder. “Moving ad dollars is not a quick or easy process. It takes time to plan campaigns, adjust budgets and create content. Brands also need proof of consistent engagement before committing to new platforms. ”

For now, many brands may keep their wallets tethered to TikTok until they’re forced to migrate elsewhere, he suggests. “Without clear data showing Reels can deliver long-term results, brands will stick to platforms that have already proven their value. For now, this feels like a ‘wait and see’ situation,” Kinder says.

But considering TikTok’s tumult over the weekend – and the uncertainty still looming – other agencies have already advised brands to adopt more aggressive diversification tactics.

“Advertisers are … diversifying their spend across multiple platforms to avoid over-reliance on TikTok,” says Jeremy Haft, chief revenue officer at digital media firm Digital Remedy.

It’s a common refrain in adland today.

“If all the hoopla around the [TikTok] ban has made anything clear, it’s that investment, spend and content should be diversified to protect against platform changes or bans,” says Amy Cotteleer, partner and chief experience officer at media agency Duncan Channon. “Even if your presence skews heavily towards TikTok, there’s still a ton of audience market share to be captured on other platforms – Reels, YouTube Shorts, even RedNote.”

For many, Meta’s unparalleled global reach and well-oiled pipes will make it a top consideration for both ad buys and creator partnerships moving forward.

Nonetheless, Haft makes the same suggestion to brands that Bryant makes to creators: “Tailor strategies for each platform’s unique audience.” He notes that cross-platform campaigns will become increasingly common in the case of TikTok’s demise in the US but stresses the need to carefully manage fragmented audiences and engagement.

As TikTok’s fate hangs in the balance, the next few months will reveal whether Meta’s strategic gamble pays off. For creators, the incentives – both financial and functional – may be compelling. But the real test lies in whether these moves can foster sustained engagement and community growth, ensuring Meta’s platforms remain competitive in an ever-evolving social media landscape.