Case Study | UX Research

Identifying social media creators’ motivations around monetization and use of Paid Digital Goods

Background

A social media platform has recently launched gifting through virtual currencies and Paid Digital Goods (such as stickers, gifts, and highlight messages) in the US. Through this study, we aimed to understand the viewers’ attitudes to gifting, how the Paid Digital Goods can encourage gifting, and overall the role it plays in the monetization strategy for creators in Asia

Objectives

  • Explore creators’ monetization strategies and their perceptions, attitudes, and the role of Paid Digital Goods (PDGs) within the broader monetization landscape.

  • Assess creators’ reactions to the PDGs features including their expectations, concerns, likelihood of adoption, and localization needs.

Approach

  • Group discussions (4-6 participants) with aspiring and regular content creators

  • Group discussions (4-6 participants) with social media users who participate in gifting

  • Demonstrative concept testing of the PDG offering

Outcome

  • An understanding of where PDGs fall as a means for monetization

  • Communication strategies to highlight the value it can create for the creator and the viewer, beyond its transactional value

  • Cues for localization in the Asian markets (India and Taiwan) with its functionality, visualization and launch

Project scope

Methodology

3 qualitative focus group discussions with content creators

4 qualitative focus group discussions with social media users (viewers)

Each discussion included components to understand:

  • Content consumption habits and preferences, particularly live-stream content

  • User experience with different monetization options

  • Concept testing - demonstrations of the PDG offerings

Sample

Centres: India and Taiwan

Age groups: 18-35 years

Usership:

  • Mix of creators and viewers across different platforms like Instagram and YouTube

  • Must have some experience with different monetization methods, particularly gifting

Duration

Approximately 2 weeks

#1 | Paid Digital Goods (PDG)

Paid Digital Goods are monetization features that allow viewers to send gifts as stickers, tokens or highlighted comments to the creator

Paid Digital Goods are primarily used on live-streamed content, but are also present on pre-recorded content

Live-streams | Super Chat and Super Stickers (on YouTube)

Pre-recorded content | Super Thanks (on YouTube) and Reel Gifts (on Instagram)

Graphic of a gift box with a red ribbon and bow, alongside stylized chat bubbles with lines of text, set against a yellow background

Live-streams encourage more interaction, and are therefore better suited to encourage fan-funding through Paid Digital Goods

Calendar page with a star icon at the center and purple tabs at the top.

Live-streams create a moment

As media consumption habits shift towards on-demand streaming content, live-streams allow viewers to engage with content as it happens, and at the same time as everyone else

It lets creators create an immersive experience — be a part of a live event, or to be part of the fun while they play games and challenges with friends, family or other creators etc.

From flaticon.com by Freepik

Live-streams create a dialogue

It allows the viewer to have direct access to celebrities, influencers and key opinion leaders (KOLs). Every viewer gets to be a participant, engaging in the conversation along with the creator and the other viewers

Creators interact with their followers. on a very personal level; reading and responding to the comments, answering questions, giving a shoutout

From flaticon.com by dwicon

Live-streams build a community

It brings together like-minded people - who engage in conversation together. It creates a safe and supportive space for people to find and connect with each other over shared interests.

It is a shared space for conversation and dialogue between the creator and the viewers, as well as between the viewers in the chat

Paid Digital Goods incentivize both the creator and the viewer by facilitating better interaction and engagement, along with its associated monetary value

Red right arrow pointing to the right against a black background.

Support

PDGs allows the viewer to show appreciation, and reward the creators for the time, effort and money that goes into creating quality content

Two arrows, one yellow pointing left and one red pointing right, overlapping each other.

Interaction

PDGs allows the viewer to participate more actively in the conversation. It helps them get their voice heard through the crowd; ask a question, share their thoughts, or just to join in the fun

Left-pointing yellow arrow sign.

Recognition

PDGs allow the viewer to stand out; for which they receive the attention of the creator and the other viewers. Over time, they believe it allows them it allows them to form a better connection with their favourite creators

Concerns

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Support

There are many modes of fan-funded contributions like paid subscriptions and memberships that may conflict with PDGs

Viewers want to be assured that the creators receive the maximum monetary benefit from PDGs as compared to other options available.

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Interaction

The transaction of purchasing and sending PDGs takes the viewer away from the content page, which is especially inconvenient during live-streams

Large yellow left-pointing arrow icon.

Recognition

Viewers want to be assured of a response, and want to know that their gesture has made an impact — especially when money is involved

There are 3 types of Paid Digital Goods

Chat

In-chat feature available during live-streams, Chat PDGs let viewers highlight their comments or questions on screen

Different payment tiers allow for increased character limits, and more screen time

For example, Super Chat on YouTube

  • Chat PDGs allow the viewers to contribute to the creator, and to the conversation at the same time

  • Chat PDGs are designed to create increased engagement, and the viewer gets a lot in return for their contribution

  • Chat PDGs guarantee success, as it never goes unnoticed, and the viewer can be assured of a response. It is also noticed by other viewers, and can kick start a conversation in the comments of the live-stream

    The colour-coded tiers of the Chat PDGs is a clear visual marker of the contribution

Stickers

Stickers can be sent to the creators during a live-stream. These colourful stickers take the form of emojis or memes, usually accompanied with animation pop on screen and allow the viewer to participate in the conversation while also getting the attention of the content creator

For example, Super Stickers on YouTube

  • Stickers are primarily a financial contribution, as there is limited interaction and recognition facilitated by it

    However, the value of the contribution is not as clear as the Chat PDGs, unless the creator and the viewers are familiar with the value of each sticker

  • Stickers mainly provide entertainment value as a quirky or fun interjection with some attention grabbing animation, but there is only so much that can be expressed through a Sticker

  • The creator may say ‘thanks’ and move on. It does not create a lasting impression that influences the conversation or grabs the attention of the other viewers

Gifts

Available on pre-recorded content, Gifts allow viewers to appreciate the efforts of the creators by sending virtual gifts

These appear as virtual stickers and animations, but are only visible to the creator

For example, Super Thanks on YouTube, or Instagram Gifts on Instagram

  • Gifts allow the viewer to appreciate the efforts of the creator, and reach out at any time.

    But there are also other forms of fan-funded monetizations, liek subscriptions and memberships that could potentially conflict with the act of Gift giving

  • It is a passive and unilateral interaction. The viewer can leave comments along with their Gifts, but have to wait until the creator responds — some viewers do not go back to check

  • As there is a delayed feedback time before the creator responds, it is not dissimilar to the act of leaving ordinary comments on the content. While there is an expectation of acknowledgement, there are no guarantees of a response

Paid Digital Goods need to be more than the act of giving, but also about what it provides the gifter

Chat PDGs

Chat is the most complete in the manner in which it helps viewers participate, while showing their support to the creator. The financial contribution made almost feels secondary — making a contribution to be seen and heard, rather than just to support the creator

Gift PDGs

Gifts, while being public, is not an experience shared with others. It is one-on-one communication between the creator and the gifter

Sticker PDGs

Stickers have less of an impact in the chat — and is primarily communication between the creator and the individual viewer. It does not do much to engage other viewers, or the conversation as a whole

#2 | Role of Monetization

Understanding the role of various monetization options, and what Paid Digital Goods provides the creator

Different means of monetization do not only determine where the revenue comes from, but also what type of content the creators make

From flaticon.com by DesignCircle

From audience engagement

Earning revenue purely from audience engagement can be the most emotionally and creatively fulfilling — but not always the most financially rewarding

  • Easy to use, and often a steady and dependable income — but sometimes susceptible to changes in platform rules, or copyright strikes

  • Being monetized directly by the platform (associated with YouTube), and depends solely on the success of the content and the creator — but can sometimes be demonetized just like advertisement funding

  • Limited experience and success among new or small creators, but holds high emotional significance when viewers show appreciation or support — but varies by type or content and the audience’s spending power

From flaticon.com by Freepik

From promoting other brands

Promotional content is the most common and lucrative means of monetization available — but the content is determined by the brand, product or event involved

  • Most common and lucrative mode of monetization, with a high ceiling for growth and upgradation — but content is dictated by the brand. Too much branded content could lose audience interest

  • Potentially lucrative for creators, and easy to connect with brands through platforms like Wishlinks — but associated primarily with lifestyle categories, as so excludes some creators

  • Conversion rates are very low and requires a large following to generate revenue

  • Not a popular option. Most creators want to be influencers rather than doing the selling, but it might work in collaboration with brands — but it might also alienate existing audience

From flaticon.com by prettycons

From building one’s own brand

While there is scope to earn revenue through the creator’s own brand, it requires them to first establish themselves to reap its rewards

  • There is potential for this for certain niches (gaming, fitness etc.) — but requires a large and loyal fanbase

  • There is potential to showcase their expertise — but they need to build a brand for the opportunities to present themselves

  • Associated with creator meets, but little awareness about its potential as a source of revenue

  • Applicable only to certain kinds of creators, primarily musicians and performers

Live-streams are currently under-utilized by creators, but PDGs inspire them to be more consistent and deliberate with their content creation strategy

A stylized illustration of a lightbulb, gears, a cube, and a partial yellow circle, symbolizing ideas, innovation, and mechanics.

Spontaneous live-streams

  • Addressing and taking questions about topics, when the creators receive many similar questions in their DMs or the comments of their posts

  • Taking a break from their regular content to connect with their audience — sometimes also includes their friends or family, and is often a spontaneous session

  • Involving their audience on their journey, and in experiencing something new

Planned live-streams

  • Activities and interactions such as reading fan mail and comments, sharing stories, or celebrating milestones — usually conducted on particular days of the week (“Thursday storytime”) or special occasions (for eg., Valentine’s Day)

  • Capturing a live event, and is usually part of a bigger coordinated effort with the event organizers or other creators

  • Collaborating with other creators to create an event that viewers can tune into and participate in

Defining the role of live-streams

Creators understand the type of content that needs to be presented through short-format and long-format content, but the nature of live-stream content is less clearly defined, and not usually a part of their regular content strategy

Most creators occasionally conduct live-streams as a break from their regular content

Live-streams as content

Only some creators (especially in Taiwan) fully adopted live-streams as part of their regular content strategy — dedicating a certain day (or different days of the week) for a particular topic.

When creators plan in advance or create a schedule for their live-streams, they are able to garner greater interest and participation from viewers

Increased engagement on planned live-streams

Regular viewers of the creators become familiar with the scheduled sessions and are able to set aside time to participate in the live-stream.

This increased audience engagement results in great fan-funding through Paid Digital Goods as viewers become more involved in the fun, and want to stand out with chats, stickers and gifts

Content that allows both creative freedom, and is a means of monetization are the ones that are the most fulfilling

Monetizing audience engagement is the most emotionally fulfilling

Being rewarded for the content they create by the viewers themselves, communicates how well they are able to connect with their audiences’ needs.

It has the potential for them to grow their audience, and build a brand for themselves over time

Planned live-streams need to be leveraged more

Live-streams are experiential by nature, and creators who are able to create unique moments for audiences receive the most engagement.

Planned or regularly scheduled live-streams let the viewer know ahead of time, and has a better chance of reaching a bigger section of the creator’s following

#3 | Concept testing

Evaluating reactions to the concept outlining the newly introduced virtual currency and gifting features

“Viewers can purchase virtual currency ‘Tokens*’, which can be used to redeem gifts to send them to the creator during live streams. These gifts, ‘Legends*’, are displayed with animations on-screen, enabling real-time interaction with the creator”

* Names of the offerings are changed to protect proprietary client information

The idea introduced in this concept allows the viewer to purchase virtual currencies (“Tokens”) of a certain value, which can then be used to buy Sticker-like animations (“Legends”) to send to creators during a live-stream

Multiple conversions might be confusing

First time users must be able to make the conversion from their local currency, to ‘Tokens’ , to the ‘Legends’ they purchase and send the creators.

The distinction between the ‘Tokens’ (the virtual currency) and the ‘Legends’ must be made clear, as well as the relationship between them. An initial reading of the idea was viewed as adding extra steps to the purchase of the ‘Legends’.

The communication around the ‘Tokens’ must evoke the abundance of choice and its ease of use

Focuses on the content, not transaction

Allowing viewers to purchase the virtual currency significantly reduces the transactions needed — for eg., being able to send 4-5 ‘Legends’ with a purchase of 300 ‘Tokens’ instead of repeating this transaction with every purchase of a PDG.

This allows the viewer to be more present in the interaction occurring over the live-stream, acting more spontaneously and engage more actively with the PDGs

Animations make it lively, but could be distracting

The bright colours and flashy animations draw the eye to the stickers being gifted.

However, live-streams can also be intimate places for the creator and their viewers to connect. Loud animations or sounds could be disruptive or distracting and take the attention away from the shared space of the live stream

Recommendations

Red right arrow sign pointing to the right.

Support

  1. Highlight the ease of use over multiple gifting moments — and how ‘Tokens’ helps maintain immersion during the live-stream, and enable repeatable use of ‘Legends’. Problems arise when the purchase of ‘Tokens’ is seen as an added step in their purchase journey

  2. Reward viewers who watch live-streams with ‘Tokens’ as this can help jumpstart the practice of gifting

Two arrows, one yellow pointing left and one red pointing right, overlapping each other.

Interaction

  1. Offer customized ‘Legends’ that are chosen or created around the creator’s content or image could help communicate a more involved and personal relationship between the creator and viewer — memes, catchphrases, inside jokes etc.

  2. The ‘Legends’ and particularly its animation must suit the tone of the creator’s content

  3. Allow the viewer to emote and communicate with ‘Legends’, in order to participate in the conversation more freely than ordinary stickers and gifts currently do — using a wider selection of emotions than was shown in the mock-up, i.e., not just positive ones, but also crying, hugging etc.

  4. Encourage interactive and collective moments among the viewers like a ‘hype train’ — where various viewers send ‘Legends’ in very quick succession, building up to a bigger celebration, animation or filter applied on screen

A yellow left arrow pointing to the left.

Recognition

  1. Communicate the value of the ‘Legends’ clearly through visual language (like Super Chat has coloured tiers and character limits) — for e.g., size, colour, animation, or time-on-screen

  2. Create badge value for both creators and viewers alike by highlighting regular contributors and the status of creators who receive many contributions

  3. Display the accumulated ‘Legends’, through all the live-streams, on the creator’s profile. This could also help signify status and success, and help improve the creator’s brand image on the platform

  4. Lay out all the ‘Legends’ received during a live-stream (to the creator), so they could help acknowledge each of the viewers’ contributions