Boost Revenue with Facebook’s Reels Ads Revolution


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In a move set to impact small businesses, Facebook announced on May 9, 2023, that it is updating and expanding its testing of Ads on Reels. The updated testing will allow more creators to earn money by creating and sharing engaging public reels. The shift is expected to encourage creators to focus more on content quality, which could, in turn, provide a more relevant advertising experience for small business owners.

In the coming weeks, Facebook plans to invite thousands more creators to join the updated tests, including those who previously participated in the Reels Play bonus program. Moreover, the social media giant also plans to initiate a similar program on Instagram, a popular platform among small businesses for advertising.

The most significant part of this update is the shift in the payout model. Rather than basing payouts on ad earnings, Facebook will now reward creators based on the performance of their public reels. “This means creators can focus on creating engaging content while we optimize the ad experience for advertisers and people,” the release said.

The performance-based model aims to minimize the influence of variables traditionally outside creators’ control, such as how many ads a viewer has already seen or whether a relevant ad is available for a particular viewer. In this new model, creators can focus on content that resonates with their audience, while advertisers gain access to a broader ad inventory to reach more people.

To benefit from Ads on Reels, creators must complete an onboarding process, which includes accepting the terms of use and providing payout details. After that, creators are expected to continue producing engaging Reels to earn. Creators can check their eligibility for this initial program on Facebook by visiting the Professional Dashboard and going to the Monetization Tools section.

Additionally, the company plans to test Ads on Instagram Reels with a performance-based payout model among a small group of creators and advertisers in select markets. A similar performance-based payout model will also be tested for In-Stream ads on Facebook.

This development could represent a significant opportunity for small business owners. With creators focusing more on content quality to increase their payouts, businesses advertising on the platform can expect their ads to be delivered in a more appealing context, potentially increasing engagement and conversion rates.

Furthermore, with Facebook and Instagram being platforms with massive user bases, the expanded testing and the new payout model could also provide small businesses with greater access to ad inventory, thereby helping them reach a larger audience.

However, as this is a test, small businesses will need to keep an eye on the results and feedback from the initial participants. They should be prepared to adjust their advertising strategies on these platforms based on the findings from these tests.

In conclusion, Facebook’s expansion of Ads on Reels and its shift to a performance-based payout model could be a game-changer for small businesses looking to advertise on social media. With the potential for increased ad relevancy and expanded reach, small businesses could find new opportunities for growth and engagement.

Image: Depositphotos

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Joshua Sophy Joshua Sophy is the Editor for Small Business Trends and has been a member of the team for 16 years. A professional journalist with 20 years of experience in traditional media and online media, he attended Waynesburg University and is a member of the Society of Professional Journalists. He has held roles of reporter, editor and publisher, having founded his own local newspaper, the Pottsville Free Press.

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