Facebook Adds Reels Ads, Tips: How Creators Make Money on the Platform - Business Insider

It’s no secret that Reels is a top priority for Meta. The TikTok-like feature, which first launched exclusively on Instagram, has become Meta’s Hail Mary in the competition to win the attention of young users and content creators.
On Tuesday, Facebook announced a global expansion of Reels. The announcement came three weeks after Mark Zuckerberg presented Meta’s Q4 earnings to investors, during which he mentioned Reels more than 20 times, and later directed Meta employees to focus on short-form video, according to a Bloomberg report.
Broader access to Reels wasn’t the only news this week. Facebook also unveiled new ways creators can make money using the feature.
“There are millions of creators today that use Facebook to express themselves and reach their audience,” Rahul Chopra, Facebook’s product marketing director for public content monetization, told Insider. “And there are a significant amount of creators that are earning meaningful revenue on our platform.”
Up until now, long-form video content was the primary money-maker for Facebook creators. Take The Pun Guys, a comedy duo based in Canada with millions of followers on Facebook. Their videos typically earn about $1,000 per million views from Facebook’s in-stream ad share program, they told Insider in 2021.
Thus far, Reels have not been a source of ad revenue or tips for creators on Facebook.
Instead, creators have only been able to make money from Reels by scoring an invite to the Reels Play Bonus program, which pays creators based on the number of views they accumulate over a month on both Facebook and Instagram. Bonuses are part of Meta’s broader incentive programs, which are funded by the company’s commitment last summer to pay $1 billion to creators through the end of 2022.
The first feature Facebook unveiled this week is an ad-revenue share model — called “Overlay Ads” — that will let eligible creators earn 55% of revenue generated by ads placed on their Reels. The ads will appear as transparent banners or stickers on a Reel, and creators can opt-in to this program, just like they can with in-stream ads on longer video content. 
The length of the Reel will not affect how much money creators can earn at this moment, Chopra said. Facebook will be “monetizing all Reels the same.”
While ads on Reels are not new (Meta began running ads on both Instagram and Facebook Reels last year, without sharing revenue), the arrival of revenue-share is.
If a creator is already eligible and enrolled in Facebook’s in-stream ad program, they can expect to get access to this new Reels ad program, according to Meta. 
Uptin Saiidi, a video creator with half a million followers on Facebook, saw an option for Reels ads appear on his creator monetization dashboard as of Wednesday, for example. 
“If an IG creator crossposts an IG Reel to Facebook, and if that creator is in our Facebook in-stream program, they can also monetize those Reels on Facebook with overlays,” Chopra added.
Facebook plans to expand the eligibility requirements for overlay ads beyond those who have in-stream ads in the coming months, according to the platform.
As of now, there is no ad-rev share model for monetizing Reels exclusively on Instagram.
“When it comes to the ad revenue share that we’re focused on at Meta, there’s not necessarily a one-size-fits-all approach to monetization when it comes to our platforms,” Chopra said. 
Within the next few months, creators can expect to start gaining access to Stars for Reels, which will let fans pay creators for their Reels content. Stars are already available for livestreaming on Facebook, and on Instagram, Badges serve the same function. TikTok rolled out its own video tipping feature, under “gifts,” last year.
Facebook currently does not take a cut of the revenue creators generate from Stars, but it does charge a small fee to cover operational costs such as Apple in-app purchase fees, Chopra said.
“Tuesday’s announcement demonstrates how serious we are about helping creators build a sustainable business on our platform,” Chopra added. 
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