Meta evolves Ads on Reels to pay creators based on reels' performance

Meta is expanding its Ads on Reels program on Facebook to let thousands more creators earn money for creating and sharing engaging public reels. 

For the unversed, Ads on Reels are ads placed directly on creators' publicly shared Reels. These ads can be viewed by a creator's followers while consuming reels without interruption. 

The company is also evolving its payout model based on the performance of creators' public reels, not the earnings of ads on their reels. According to Meta, payouts will be based on the number of plays - the better the performance of a creator's reel, the more they can earn. Over time the company may begin to incorporate other signals into payouts.

"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," Meta wrote in a blog post on Tuesday.

Upon joining the test, all creators will be automatically included in the new payout model. In the following weeks, creators who had been testing Ads on Facebook Reels will also be transitioned.

Furthermore, Meta said it will start testing Ads on Instagram Reels with a similar performance-based payout model. The trial will involve a limited number of creators and advertisers in select markets.

Meta has additional plans to begin testing a performance-based payout model for In-Stream ads on Facebook. This trial will involve a select group of creators and aims to support creators making all types of content.

"We're still early in our work with Ads on Reels, and we'll continue to monitor these tests closely as we work toward the best solution for creators, advertisers and our apps broadly," Meta said.