Creator News

Instagram Is Testing a New Way to Pay Creators With “Ads on Reels”

by Nicholas Bouchard · Published May 12, 2023

These days, it seems as though creator funds, bonuses, and other monetization options are getting canceled (whether literally or figuratively) on every platform, leaving creators frustrated by their dwindling payouts. But Meta is trying to turn this around. On Tuesday, Meta announced that it’s expanding “Ads on Reels” — a performance-based monetization program that it’s been testing since last year — on both Facebook and Instagram.

That means creators can soon expect to earn more from their Reels. Keep reading for everything we know so far.

How the Ads on Reels payout model works

Unlike typical ad revenue-sharing programs, Meta’s Ads on Reels determines payouts for creators based on the number of plays of their Reels — not how much ad revenue they bring in. So, the more plays your Reels get, the bigger your payout will be.

After about a year of testing this program, Meta has decided that performance-based payouts are the way to go:

“With a performance-based model, creators can focus on the content that’s resonating with their audience 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.”

This program isn’t widely available yet, so you’ll need an invite from Meta to be part of the testing group.

@the.leap

Meta announced changes to the monetization program and it’ll be a performance based model to rewards creators 👀 What do we think of the coming changes? Let us know in the comments! #meta #creatornews #creatorupdates #metanews #metaupdates #greenscreen

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Who’s eligible for Reels revenue-sharing?

Facebook

Right now, the Ads on Reels program is available on Facebook for creators that meet the following eligibility criteria:

Since this is a restricted test, Facebook will only be inviting “thousands” of creators to join in — no word on an exact number. While there’s no guarantee that you’ll be part of this test, you might have a better chance of receiving an invite in the coming weeks if you previously participated in the now-axed Reels Play bonus program on Facebook. 

To know if you’ve been invited, go to the Professional Dashboard on Facebook, then the Monetization Tools screen. If you see Ads on Reels, it means you’ve been invited to the program!

Instagram

So what about Reels creators on Instagram? Meta said it’ll begin testing a similar program with “a small group of creators and advertisers in select markets.” However, it hasn’t yet shared what these markets are or how many creators will get an invitation.

What the Ads on Reels program means for creators

When Meta paused its Reels Play bonus back in March, some Instagram creators lost a big channel for revenue. While there aren’t any widely available numbers that show how much creators can expect to earn from Ads on Reels, knowing that Meta is testing this program will likely be reassuring for those who specialize in short-form video, or have the majority of their audience on Instagram.

After all, many other platforms have announced new monetization options for short-form content this year. For instance, TikTok recently made its Creativity Program Beta available to all eligible U.S. creators, while YouTube launched its ad revenue-sharing model for YouTube Shorts. So, Meta is certainly playing catch-up.

Only time will tell just how profitable revenue-sharing will be on Instagram Reels. Watch this space for any further updates.

Not sure how to monetize your Reels?

If you’re still waiting on your invite from Meta, don’t worry! There are many, many other ways you can start earning as an Instagram creator. Check out our guide to making money on Instagram, which covers everything from partnering with brands to making affiliate income and more.

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Further reading

Nicholas Bouchard
About the author

Nicholas Bouchard

Nick Bouchard is a content writer and marketer with a passion for creation. His hobbies range from writing fiction to wrestling. He can only be photographed in national parks and on mountains, and pictures of him usually come out blurry. Some wonder if he even exists at all.
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