Facebook Expands Ads on Reels Test, Evolves Payout Model for Creators
Highlights
- Facebook is updating and expanding its Ads on Reels test program, allowing more creators to earn money for creating and sharing engaging public reels.
- Creators will be paid based on the performance of their public reels, not the earnings of ads on their reels, allowing them to focus on creating engaging content while Facebook optimizes the ad experience for advertisers and viewers.
- In addition to expanding the program on Facebook, Facebook plans to begin testing a similar program on Instagram and a performance-based payout model for In-Stream ads on Facebook with a small group of creators to support creators making all types of content.
Facebook and Instagram are updating their payout models for creators on their platforms. In a blog post, Meta announced that Facebook will be paying creators based on the performance of their public reels, not the earnings of ads on their reels. This will allow creators to focus on creating engaging content while Facebook optimizes the ad experience for advertisers and viewers.
The new payout model will be based on the number of plays a reel gets. The better a creator's reel performs, the more they can earn. Over time, Facebook may incorporate other signals into payouts. With a performance-based model, creators can focus on the content that resonates with their audiences and helps them grow, advertisers get access to more ad inventory to reach more people, and viewers get a more consistent viewing experience with more relevant ads.
Facebook is expanding their test group by inviting thousands more creators to participate, including those who previously participated in their Reels Play bonus program. In addition, they plan to start testing a performance-based payout model for In-Stream ads on Facebook with a small group of creators.
Creators who are interested in participating in the program must meet certain minimum requirements and live in one of the 52 eligible countries. Once they are added to the test, they need to complete the onboarding process, which involves accepting the terms of use and providing payout information. After that, creators can focus on creating engaging Reels to start earning.
Instagram will also begin testing a similar program in the coming weeks. A small group of creators and advertisers in select markets will test Ads on Instagram Reels with a performance-based payout model.
Meta's move to a performance-based payout model is a significant change for creators, who have traditionally had little control over their ad earnings. With this new model, creators can focus on creating content that resonates with their audience and earn more money based on their reel's performance. This is part of Meta's strategy to compete with TikTok, the popular short-form video app owned by ByteDance Ltd., which has been attracting more users and advertisers with its viral content. It faces increasing competition from TikTok, which has been growing rapidly in the past few years.
TikTok has also been paying its creators based on views, rather than ads, since 2020. TikTok's Creator Fund, which distributes money to eligible creators who meet certain criteria, pays them based on a formula that takes into account factors such as video views, engagement and region. TikTok said it has allocated more than $1 billion for the Creator Fund in the U.S. over three years, and more than $2 billion globally.
Meta's new payment model for Reels is similar to TikTok's Creator Fund, but with some differences. Meta said it will pay creators based on a fixed rate per view, which will vary depending on factors such as video quality and audience retention. Meta did not disclose how much it will pay per view, but said it will share more details with creators who join the pilot program. Meta also said it will cap the amount of money each creator can earn per month, but did not specify the limit.
Meta said it hopes that by paying creators based on views, it will encourage them to post more Reels and attract more users and advertisers to its platforms. Meta said that Reels is one of its fastest-growing features, with more than 2 billion people watching Reels every month across Facebook and Instagram. Meta also said that Reels has helped increase its advertising revenue.
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