Instagram Parent Meta Explores Reel Monetisation Opportunities With New Ad Formats

Meta Platforms announced a series of new ad formats on Tuesday, aimed at creating new revenue streams for the short video and business messaging products that it has identified as key to growth this year.

In a blog post, the parent company of Facebook and Instagram said it was starting tests for a new skippable “post-loop” video ad format to play after its TikTok-like short video product Reels, which it has been promoting heavily.

Another new Reels format features horizontally scrollable carousel ads, which can display between two and 10 images at the bottom of a Reel, the post said.

Describing the company’s business strategy at a press event, Meta executives said the new formats could lure Reels creators with ways to earn money from ad placements next to their videos.

“Our goal is to be able to provide the tools and the monetisation opportunities, as you are continually growing your creator following across our platforms,” said Nada Stirratt, vice president of Meta’s global business group for the Americas.

The executives also touted ads that open direct chats between businesses and prospective customers saying Meta can now use artificial intelligence to optimise whether the ads target new customers or those most likely to make a purchase.

Artificial intelligence would, likewise, power the selection of ads shown in users’ Instagram feeds, the company said, citing internal research involving 4,00,000 advertisers that showed the approach produced more user purchases than other feed ads.

Meta is also opening up new spaces for advertising on Instagram, including the ‘Explore’ tab that users see when they run a search in the app, the blog post said.