Meta explores new performance-based payment model for creators

by | May 12, 2023 | News

Meta has announced plans to update and expand its Ads on Reels test, a move that it says will “make it possible for more creators to earn money for their engaging reels”. The move comes as leading social media platforms look for ways to build attractive monetisation models that can attract and retain the digital sector’s top talent.

Meta began testing Ads on Facebook Reels last year as a way for creators to earn money for creating and sharing public reels. This week, it said: “We’re accelerating expansion, inviting thousands more creators to join our updated tests, including many creators who participated in our Reels Play bonus programme on Facebook. And in the coming weeks, we’ll begin testing a similar programme on Instagram.”

In addition to evolving the Ads on Reels programme, Meta is 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.”

Initially, said Meta, payouts in the test will be determined by the number of plays. “The better their reels perform, the more creators can earn. Over time we may begin to incorporate other signals into payouts. We’re learning through our tests that payouts tied to performance are better at balancing the needs of everyone.”

Explaining its thought process further, Meta said: “Many variables outside of creators’ control influence 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. With a performance-based model, creators can focus on the content that’s resonating with their audiences; advertisers get access to more ad inventory; and people get a more consistent viewing experience with more relevant ads.”

All creators onboarding 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. In addition, Meta will begin to test Ads on Instagram Reels with a similar performance-based payout model among a small group of creators and advertisers in select markets. To be eligible for an invite on Facebook, creators must live in one of 52 countries and meet several minimum requirements.

Meta noted that Ads on Reels is just one of many monetisation tools on Facebook and Instagram. “Eligible creators can also earn from the support of fans through Subscriptions, Stars and Gifting, from brand partnerships via our creator marketplace and from Facebook through in-stream ads and our Performance Bonus programme.”

See our takeaways on Meta’s Q1 results.

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