Meta’s updating its monetization program for Reels creators, which will now see creators paid based on the performance of their content, as opposed to the ads shown alongside their clips.

Meta’s Reels ads program, which it first launched last year, will also now be expanded to thousands more users, as Meta continues to develop new models to ensure that its top stars get paid, which will ideally keep them posting their Reels content to its apps.

As explained by Meta:

“Last year, we began testing Ads on Facebook Reels as a way for creators to earn money for creating and sharing engaging public reels. We’re now testing a new payout model that pays 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 we optimize the ad experience for advertisers and people.”

The update will help to address perceived inequities in the system, with creators having no input into the ads that are shown alongside their clips. Now, as Meta notes, the emphasis will be on the quality of the content itself, not on the right types of Reels that will maximize advertising potential.

“Initially, payouts in the test will be determined by the number of plays. The better their reels perform, the more creators can earn. Over time we may begin to incorporate other signals into payouts.”

The system will provide more monetization potential, and seems to follow the same type of approach as YouTube in paying creators from a pool of Reels ad revenue, as opposed to monetizing based on the specific campaigns displayed.

Meta also says that more creators will now be able to join the monetization program, with invites going out to previous Reels monetization initiatives from this week.

“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. To check if you’re part of this initial program on Facebook, visit Professional Dashboard and go to the Monetization Tools section. If you are invited, you should see “Ads on Reels” and you can select “Set up” to begin onboarding.”

Maximizing the potential for creators has been a big focus for Meta, as it knows that it needs these popular stars to keep sharing their content in its apps to maximize user engagement. 

Indeed, recent stats from Facebook have shown that time spent in its apps is rising once again, with Reels being the biggest driver – though at the same time, fewer people are posting original updates that they have in times past, which puts more reliance on those that are sharing content to keep driving those engagement stats up.

Meta also knows that partnering with creative talent will be key to driving metaverse take-up, with these popular stars able to help to build new worlds, and shepherd their audiences into its next-level experiences.

With these factors in mind, Meta needs to get creator monetization right, and Reels could be the key opportunity to win favor with the next generation of talent.

Effective monetization of short-form video remains a challenge, but Meta needs to keep developing its models, for both current and future projects.

You can read more about Meta’s updates to Reels monetization here.