Meta expands Ads on Reels test with new performance-based payout model

SAN FRANCISCO: Meta (formerly Facebook) has announced that it is updating and expanding its Ads on Reels test (or monetisation programme) on Facebook, making it possible for more creators to earn money for their engaging reels.

The company said it will start testing the programme on Instagram in the coming weeks.

Meta is also evolving the programme by testing a new payout model that pays creators based on the performance of their public reels, not the earnings of ads on their reels.

"This means creators can focus on creating engaging content while we optimise the ad experience for advertisers and people," Meta said in a blogpost on Tuesday.

The company began testing Ads on Facebook Reels last year as a way for creators to earn money on their Reels.

According to the tech giant, payouts in the test will be determined by the number of plays, that is, the better creators' reels perform, the more they can earn.

"We're learning through our tests that payouts tied to performance are better at balancing the needs of everyone. 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's a relevant ad to deliver that viewer," Meta said.

"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," it added.

Moreover, the company mentioned that all creators invited to the test will automatically be added to the new payout model, and over the coming weeks creators previously testing Ads on Facebook Reels will be transitioned.

"To check if you're part of this initial programme on Facebook, visit Professional Dashboard and go to the Monetisation Tools section. If you are invited, you should see 'Ads on Reels' and you can select 'Set up' to begin onboarding," Meta stated.