Meta is doubling down on Reels, the company’s short-form video answer to TikTok. In a blog post published today, the Facebook and Instagram parent company introduced more ways for creators to monetize on Facebook with in-video ads, in addition to other features.
Creators now will be able to earn 55 percent of ad revenue from banner ads, which will show up as a semi-transparent overlay at the bottom of a reel, as well as sticker ads, which are static images that can be placed anywhere in the video. The rest of the revenue will go to Meta, which represents the same revenue breakdown as Facebook's in-stream ad program.
The new monetization tools are the latest attempt from Meta to attract creators from TikTok. In December the company said it would give $35,000 to eligible creators through a Bonus Play program. Meta has committed to spend $1 billion in creator investments by the end of 2022.
But it remains to be seen whether Meta's plans will be enough to pull advertisers and creators away from TikTok. During Meta’s recent fourth-quarter earnings call, executives admitted that Reels does not monetize as much as Facebook’s news feed or Instagram’s stories. In the call, Meta CEO Mark Zuckerberg cited TikTok as a growing threat to his company's consumer base but said he was optimistic Reels would eventually drive more revenue because of the fast growth of short-form videos.