Meta promotes Reels monetization through innovative ad formats.
On Tuesday, Meta Platforms Inc (META.O) made a number of announcements regarding new ad formats. These announcements were made with the intention of generating new revenue streams for the company’s short video and business messaging products, which it has recognised as being essential to the company’s growth this year.
The parent company of Facebook and Instagram announced in a blog post that it was beginning tests for a new skippable “post-loop” video ad format to play after its TikTok-like short video product Reels, which it has been heavily promoting. The purpose of the test is to determine how well the new format will perform.
According to the post, there is yet another new style for Reels that incorporates horizontally scrollable carousel advertisements. These ads can display anywhere from two to ten photos at the bottom of a Reel.
At a recent press event, executives from Meta discussed the company’s business plan by stating that the new formats may be able to entice Reels producers by providing opportunities for them to earn money from ad placements next to their videos.
According to Nada Stirratt, vice president of Meta’s global business group for the Americas, “Our goal is to be able to provide the tools and the monetization opportunities, as you are continually growing your creator following across our platforms.” “Our goal is to be able to provide the tools and the monetization opportunities,”
The CEOs also promoted advertisements that initiate direct dialogues between businesses and prospective customers, stating that Meta can now utilise artificial intelligence to optimise whether the advertisements target new customers or those who are most likely to make a purchase.
The company stated that artificial intelligence would also be used to select the advertisements that would be shown in the feeds of Instagram users. They cited internal research that involved 400,000 advertisers and showed that the strategy produced more user purchases than other feed advertisements.
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