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How to Make Money with Instagram, TikTok and YouTube? (Rafael Kiso) | JOTA JOTA PODCAST #87

0h 05m video Published Nov 2, 2022 Transcribed Jul 15, 2026 J Joel Jota
Intermediate 4 min read For: Social media marketers, content creators, and business owners looking to understand platform dynamics.

AI Summary

In this podcast episode, Rafael Kiso discusses the fundamental business model of social media platforms like Instagram, TikTok, and YouTube, emphasizing that understanding user retention is key to success. He explains that while platform formats and algorithms change, the core model of selling ads through user attention remains constant.

[00:17]
Fundamentals of Different Disciplines

Kiso notes that every field, from kickboxing to social media, has unchanging fundamentals that remain constant regardless of algorithm changes.

[00:29]
Social Media Business Model

The core business model of social media platforms is selling ads. Platforms need both a large user base and high user retention to maximize ad revenue.

[01:10]
Two Variables for Ad Sales

Platforms require two variables: number of users (audience size) and user retention (time spent on platform). Retention is critical because more time means more ad space.

[02:05]
User Numbers

Instagram has 125 million Brazilian users, TikTok 82 million, and YouTube over 130 million. These massive user bases are not the problem; retention is the battleground.

[02:31]
Retention Battle

TikTok's infinite feed creates high retention, causing Instagram to copy the format (Reels) to retain users. Content that helps retention is prioritized by algorithms.

[03:28]
Algorithm and Retention

Instead of trying to hack the algorithm, focus on creating content that retains users. Useful, valuable content retains; advertising typically reduces retention.

[04:13]
Advertising Trade-off

Advertising is necessary for brand recall and purchase intent, but it hurts retention. Keep your feed clean with valuable content and use advertising strategically without creating noise.

[05:05]
Constant Change in Formats

While the business model is stable, formats (like Reels, Stories) constantly change. Adapting to new formats is necessary, but the retention principle remains.

Success on social media hinges on understanding that platforms prioritize user retention to sell ads. Creating content that retains attention is the unchanging strategy, while formats will continue to evolve.

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Study Flashcards (7)

What is the core business model of social media platforms like Instagram and TikTok?

easy Click to reveal answer

Selling ads.

00:29

What two variables are needed for platforms to sell ads effectively?

medium Click to reveal answer

Number of users (audience size) and user retention (time spent on platform).

01:10

How many Brazilian users does Instagram have according to the video?

easy Click to reveal answer

125 million.

02:05

Why did Instagram create Reels?

medium Click to reveal answer

To compete with TikTok's high retention caused by its infinite feed.

02:31

What type of content do algorithms prioritize?

easy Click to reveal answer

Content that helps retain users.

02:59

Why does advertising typically reduce retention?

medium Click to reveal answer

Because users can skip ads, and ads interrupt the user experience.

04:13

What is the unchanging principle in social media according to Kiso?

hard Click to reveal answer

The business model of selling ads through user retention.

05:05

💡 Key Takeaways

💡

Business Model Insight

Clarifies that all major platforms rely on ad sales, which drives their algorithm decisions.

00:29
📊

Retention Battle

Explains the strategic reason behind Instagram copying TikTok's format.

02:31
⚖️

Algorithm Hacking Myth

Debunks the obsession with hacking algorithms, emphasizing retention instead.

03:28
🔧

Advertising Trade-off

Highlights the conflict between advertising necessity and retention harm.

04:13

✂️ Creator Tools: Viral Hooks

AI-generated clip ideas for Shorts based on the transcript

The ONE thing that NEVER changes in social media

44s

Reveals a counterintuitive truth about the unchanging business model behind all platforms, sparking curiosity and debate.

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Would you PAY for Instagram? Here's the truth

59s

Challenges viewers with a provocative question that exposes the real reason platforms are free, creating engagement and shares.

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Why TikTok is beating Instagram right now

60s

Explains the core battle for user retention in a simple, relatable way, tapping into current platform rivalry trends.

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Stop trying to hack the algorithm! Do THIS instead

60s

Debunks a common obsession among creators and offers a straightforward, actionable alternative that promises better results.

▶ Play Clip

Why ads KILL your reach on social media

60s

Delivers a controversial yet practical insight about advertising that contradicts common advice, prompting high engagement.

▶ Play Clip

[00:02] but let's get to it. Is there anything you've noticed that's changing, and people have to adapt to it? And is there something that won't change despite all the changes? This always remains the same if people don't make

[00:17] mistakes. Obviously, you have a fundamental from kickboxing, a fundamental from swimming, a fundamental from social media that, regardless of the algorithm, will always remain. And then there are those things that people have to pay attention to because they're

[00:29] changing. It's a conceptual question. What will remain is a very simple understanding of the business model that these social media platforms have. What is their business model? Selling ads, right? How do

[00:44] wait a minute. So, you have to master the business model because you might notice there are some social media platforms where you ask, "Would you pay to use Instagram?" Most people would probably

[00:57] say yes, but in practice, they wouldn't pay. So, everyone Facebook for free, even though they have YouTube Premium, right? But the vast majority consume it for free. Why? Because their business model

[01:10] is selling ads. Okay, when we understand the business model of understand that there are two variables that allow them to sell ads. First, the number of users; they need to have an audience. And

[01:22] don't have enough ad space. Right? It's no use having 125 million only one hour a day; you wouldn't have space to place ads there. So they need people all day long, right? So they need to retain the user, and what

[01:38] person to go to a neighboring network, to leave. It seems like there are few links, that's why the caption doesn't have links, etc. It's not just Stories that have external links, but the objective fact is that when we understand the number

[01:51] of users they have, that's not the problem, but the number of users, right? How many users do they have today? The target number of users, the entire high school target number is 2.9, and that's almost 50%.

[02:05] almost 50%. Never in history has there been a product with so many users, right? But the fact is, TikTok has 82 million Brazilian users, Instagram has 125 million, YouTube... If we count

[02:18] active users, it's 120 million, but it exceeds 130 million Brazilian users. So yes, the first variable is that everyone has millions of users. The second variable, which is retention, is

[02:31] retention, which is why the fight between TikTok and Instagram is happening. TikTok created a model where retention is absurd because it's an infinite feed. You go in to spend five minutes, and 15 minutes pass without you even noticing the video.

[02:46] Instagram started seeing the numbers, right? " Wow, my retention is falling because people are spending more time there," creating the Rios format. So what I want to say is this: what doesn't change is that this model doesn't change. The

[02:59] moment we understand that the model now has to help retain users, if on the network, that's the type of content they'll love to viralize, they'll content that doesn't help retain users, that 's the type of content that wo

[03:13] a metric like watch time per user. For example, retention can be the time, it can be, but the objective fact is that the social signals people give—watching, liking, commenting, wanting to

[03:28] social signal to the algorithm. Okay, so retention means that people are paying attention, right? But when we understand that retention is the game, I do understand the inner workings of the algorithm. You realize that everyone gets caught up in this obsession,

[03:43] right, trying to understand the algorithm's hacking? Just understand retention. If you help retain, you can have more success in this game. And help retain, right? For example, you give tips, all

[03:59] example, you give tips, all your content is more useful, it's so with others, right? Now, when you advertise, you must have already tested it, it must plummet because advertising helps retain.

[04:13] seconds to skip ads, right? On YouTube, so advertising doesn't help retain. Does that mean you should n't advertise? Of course not, because advertising is part of our positioning system: frequency,

[04:27] brand recall, purchase intent. But you should reserve your advertising to do this through the system. The media, and it doesn't stop somehow creating noise in your feed, so keep it as clean as possible with content that is

[04:40] truly useful, that has value for people, that will transform something that meets what people are already looking for, their pains, their needs, because when a person sees it, they identify

[04:52] with it, it retains, right? Now, when you advertise, it doesn't retain, so there are techniques, including advertising without delivering advertising, precisely to obviously retain first and then cut it off. So these are ways of

[05:05] doing it, and this is something that will never change, it will never change. Now, one will never change, it will never change. Now, one thing that always changes is the formats.

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