V.0 Draft
Monetization
Principles
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Social media companies are among the world’s most profitable businesses, collectively generating over $250 billion in annual ad revenue. In recent years, creators and publishers have made valuable inroads towards seeking a share of that revenue. In 2024, an estimated $20 billion was redistributed through revenue redistribution programs to upwards of 6 million social media accounts. This is in addition to tens of billions of dollars channeled through monetization features, like tips, subscriptions, and branded partnerships. Monetization programs have grown especially rapidly since 2022, as competition over creators has intensified.
But who qualifies for social media monetization? And what are the processes that underlie platforms’ fund allocation decisions?
Financial incentives and fund transfers of this scale carry significant inherent risks, from incentivizing illegal and harmful content and activity, to channeling funds to sanctioned and terrorist entities as well as actors otherwise prohibited from receiving ad funding, to undermining media publishers and legitimate creators, with substantial adverse impact on society, human rights, the environment and the company’s own business.
These Monetization Principles are intended to initiate a conversation and provide a framework for the responsible governance of social media monetization. They outline core principles and provide early reflections and guidance around risk assessments, stakeholder accountability and public transparency.
Safe by Design
Social media companies should proactively identify, assess, and address any actual or potential adverse impacts of their monetization programs, systems and practices on illegal activity, society, the environment and the company’s own business.
Key concerns
- Illegal activity
- Societal impact
- Human rights violations
- Environmental impact
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- Impact from Payments and Financial Incentives
- Impact from under and over enforcement
Responsible Business Partnerships
Social media companies should ensure that their business partnerships, including their relationships with monetization partners and monetization-related vendors, comply with their legal obligations and commitments to responsible business practices.
Key concerns
- Inadequate Know Your Business Customer (KYBC) due diligence
- Violations of sanctions and Anti Money Laundering and Countering the Financing of Terrorism (AML/CT) regulations
- Unfulfilled supply chain commitments
Fair and predictable Terms and Policies
Social media companies should have terms and policies that are fair and clearly communicate applicable monetization restrictions and the various factors that may impact on monetization payout.
Key concerns
- Unfair terms
- Lack of clarity around restrictions and their applicability
Due process and Explainable Enforcement
Social media companies should ensure that their decisions to allow or restrict monetization follow due process, and are justified and duly explained in notices to impacted parties.
Key concerns
- Over-reliance on automated decision making
- Lack of clarity around applied restrictions and opportunities for appeal and reparation
Adequate Reparations
Social media companies should ensure that errors stemming from their monetization systems, processes and practices are promptly remedied and financial losses adequately compensated.
Key concerns
- Inadequate remedies
- Substantial financial losses
Transparency & Accountability
Social media companies should provide sufficient transparency for advertisers, publishers, shareholders and users to make informed decisions and enforce their rights.
Key concerns
- Inadequate stakeholder-specific information
- Limited public disclosures on platforms’ approach to monetization
- Absence of performance reporting