Meta updates Ads on Reels with new performance-based payout model

Meta has updated and expanded its Ads on Reels tests so more creators can earn money for creating and sharing public reels.

Meta is also evolving the program to pay 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 Meta will optimise the ad experience for advertisers and people.

“We’re inviting thousands more creators on Facebook to join our updated tests, including many of the creators who previously participated in our Reels Play bonus program on Facebook. And in the coming weeks, we’ll begin testing a similar program on Instagram,” wrote Meta in a blog post.

Payouts will be determined by the number of plays. The better a creator’s reel performs, the more they can earn. “Over time we may begin to incorporate other signals into payouts,” added Meta.

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 to that viewer.

Meta further 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.”

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.

Meta also plans to start testing a performance-based payout model for In-Stream ads on Facebook with a small group of creators to support creators making all types of content.

To be eligible for an invite on Facebook, creators must live in one of 52 countries and meet several minimum requirements.

Once added to the test, in order to earn from Ads on Reels, creators must complete the onboarding process which includes accepting the terms of use and providing payout details. From there, they just need to continue creating engaging Reels to earn.