Facebook Offers Performance-Based Payouts for Ads on Reels

Facebook is expanding its Ads on Reels test, offering creators performance-based payouts for creating and sharing engaging public reels. The new program will pay creators based on the performance of their public reels, rather than the earnings generated from ads on their reels. This means creators can focus on creating engaging content, while Facebook optimizes the ad experience for advertisers and viewers.

The updated Ads on Reels test will invite thousands more creators on Facebook to join, including those who previously participated in the Reels Play bonus program on Facebook. In addition, Facebook will begin testing a similar program on Instagram in the coming weeks.

The onboarding process for creators includes accepting the terms of use and providing payout details. Once added to the test, creators need to continue creating engaging Reels to earn. The program is being rolled out to creators in 52 countries who meet the minimum requirements.

Many variables outside of creators’ control have traditionally influenced their ad earnings, such as how many ads have already been shown to the person viewing their content or whether there‚Äôs a relevant ad to deliver that viewer. With a performance-based model, creators can focus on the content that’s resonating with their audiences and helping them grow, advertisers get access to more ad inventory to reach more people, and people get a more consistent viewing experience with more relevant ads.

The Ads on Reels program will also begin testing 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’s expansion of the Ads on Reels test is in line with the platform’s increasing focus on video content. The platform has been working to make video a more central part of the user experience, with the launch of features like Facebook Watch and Instagram Reels.

As the competition for viewers and creators heats up, platforms like Facebook and TikTok are looking for ways to attract and retain top talent. Performance-based payouts for creators could be a way to incentivize them to create more engaging content and grow their audience.

However, there are concerns that the emphasis on performance-based payouts could lead to a focus on clickbait and viral content, rather than quality content that provides value to viewers. It remains to be seen how Facebook will balance the need to attract and retain top creators with the need to provide a quality user experience for viewers.

Overall, Facebook’s expansion of the Ads on Reels test is a significant development for the platform’s creator ecosystem. With the move to performance-based payouts, Facebook is offering creators a new way to monetize their content, while also optimizing the ad experience for advertisers and viewers.