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How To Make Money From Facebook Reels

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Facebook Reels, which first went live in the United States in September, is now available in more than 150 countries across the world. The function, which is an important component of Meta’s answer to the TikTok threat, allows creators to upload short-form video material on Facebook and cross-post Reels from Instagram to reach a larger audience. Along with today’s global launch, Facebook is also rolling out more creative tools and new methods for creators to monetize their Reels through advertising and, shortly, Stars.

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Tiktok vs. Instagram Reels vs. Facebook Reels

While Reels originated as a strategy to directly compete with TikTok with a feature within the Instagram app, Meta quickly recognised it could wage a more potent counteroffensive if it included Facebook. As a result, during its Q4 2021 earnings call, the business boasted that Reels is now its “fastest-growing content format by far.” Reels, according to the business, was the biggest driver to Instagram growth and was “increasing very quickly” on Facebook as well.


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Reels, on the other hand, currently monetizes at a lower rate than other content formats such as Instagram’s Feed and Stories; however, Meta expects that this will improve over time.

In that regard, Facebook is extending the testing of Facebook Reels Overlay Ads to all Reels artists in the United States, Canada, and Mexico today. According to Meta, the test will be expanded to nearly all of the 50+ countries where in-stream advertisements are now available by mid-March.

In-stream video advertising are now only available on Facebook videos, not Reels. As a result, these new Overlay Ads are Facebook’s first attempt to directly monetize Reels through advertising income.

Participants in the ad tests will have the option of choosing between two different ad formats: banners and stickers. Instead of pausing the video to show the ad, these are non-interruptive adverts that sit clearly atop the playing content. Stickers are static images that can be placed anywhere within the reel, just like other stickers. Banner ads appear as a semi-transparent overlay at the bottom of a reel, whereas banner ads appear as a semi-transparent overlay at the bottom of a reel. The ad that is best suited to the viewer will subsequently be displayed in the frame chosen by Facebook.

What is creator’s revenue share on Facebook?

During the testing, Meta says it will utilise the same income split with creators as it does now for its in-stream ads programme, which is 55 percent for the creative and 45 percent for Facebook. However, as the tests progress, this could change.

By default, creators who are already enrolled in the existing in-stream ad programme will be enrolled in the new Overlay Ads experiments. (Over the past few months, a select group of people have been invited to test these Overlay Ads.) Others can see if they qualify and join here.

In the next months, Facebook will roll out full-screen and immersive advertisements in between Reels in a number of global countries. Since October, these formats have been in beta testing.

However, not all Facebook Reels will include advertisements. According to Meta, whether or not commercials are included in a reel is determined by a number of criteria, including advertiser targeting and the ad’s value to the viewer. If they choose, creators can opt-out of banner adverts for individual reels in Creator Studio.

Meanwhile, with the new banner and sticker advertising, advertisers will obtain brand appropriateness options such as Publisher Lists, Blocklists, Inventory Filters, and Delivery Reports.

Creators will soon be able to monetize their reels with Stars, a virtual tipping system that is already available on Facebook Live. Successful creators are currently earning direct payments as well. The Reels Play bonus programme, which is part of Meta’s bigger $1 billion creator fund, can result in large incentives – the business claims that some creators earn up to $35,000 per month. The long-term viability of creator funds, however, is still debatable.

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Since the fund was created last July, Meta has declined to say how much it has paid out to Reels artists directly.

Facebook Reels Features

Aside from monetization options, Facebook is now bringing out Remix, 60-second Reels, Draft, and Video Clipping, which it first announced last year.

Remix is similar to TikTok’s Duets in that it allows creators to construct their own reel alongside another publicly uploaded reel (or part of a reel) on Facebook. Facebook creators will now be able to use this tool as well.

Reels has been catching up on video length after TikTok increased its video length from 60 seconds to 3 minutes. Last year, Instagram Reels upgraded to 60-second films from 30 seconds, and now Facebook Reels will do the same.

Drafts and Video Clipping are two other tools that will be available soon. Creators will be able to work on their content and save it for later release using draughts. The video cutting option will be available in the coming months, making it easier for video makers who traditionally publish live or long-form content to test Reels.

Is Facebook Reels Monetization Available In India?

Facebook will make short videos a bigger part of the overall Facebook experience as part of its larger commitment to invest in Facebook Reels. Creators from all supported regions, including the United States, will be able to share their Instagram Reels for Facebook recommendation.

What it means for Facebook?

In the coming weeks, Facebook will allow users to share their reels to Stories, view reels in the Facebook Watch tab (which will soon also house Reels creation tools), and feature Reels and creation tools at the top of users’ News Feeds (which are now simply referred to as “Feeds” in another recent change). While scrolling through your Feed in some countries, Facebook may suggest clips you might enjoy.

Reels is one of Meta’s biggest product investments, and the company has openly highlighted the threat posed by TikTok, which Meta CEO Mark Zuckerberg has described as a “major competitor” developing “quite quickly off of a very huge base.”

However, TikTok isn’t Meta’s only problem. For the first time, Facebook reported a drop in daily active users in Q4 – an indication that people aren’t using Facebook as often as they used to. Simultaneously, Apple’s privacy measures are expected to reduce Meta’s sales by $10 billion this year, reducing its ad business. Meta recognises that in order for Facebook to be successful, it must woo artists and provide users with alternatives to social networking, such as watching videos, listening to music, or buying – all of which have seen significant investment in recent years.