Meta prioritizes TikTok-style videos as it drops in-stream reserve ads

Meta-owned Facebook is sunsetting reserved ad buying in videos, a program that was once built up to package so-called “premium” ad inventory for major brands. The social giant announced the end of “in-stream reserve” as a buying option today, as part of its push to prioritize shorter-form videos such as Reels, the TikTok-style content. Meta said that it would fulfill all advertising orders bought through the reserve program through the end of the year. Meanwhile, Meta made new features available around Reels ads, including adding “click-to-message” ads within Facebook Reels. Click-to-message ads are units that have links to chat with the sponsored business. Now, the messaging ads can be embedded into Reels on Facebook. Facebook advertisers will also be able to pay to boost promotion of their Reels ads on the app, as they have been able to do on Instagram, according to Meta’s update. The video ad changes show that Meta’s strategy is evolving with its push into the shorter style of videos that define how social media is being used these days. Reels, YouTube Shorts and Snapchat Spotlight, are all examples of new video formats from the platforms that are competing with TikTok. The end of “in-stream reserve” ads is a sign of the times, and perhaps an indication that the types of content those ads supported are not a priority on Facebook. In-stream reserve has been an option on Meta since 2018, when it was still called Facebook. Reserved ads were part of a program that was designed for brands with big budgets to buy ad space similar to the way they buy TV commercials in the upfronts. The brands ordered impressions at a set price; they guaranteed a set ad delivery and higher levels of brand safety because the inventory was more thoroughly vetted. Check out the latest Ad Age events and award programs In-stream reserve was developed as a way to buy ads on Facebook as the company was prioritizing Watch, a YouTube competitor geared toward higher-production shows, and they would run pre-roll and mid-roll commercials. Meta tried to make premium video an attractive offering as part of upfront negotiations with top advertisers, the type of buyers that are more comfortable in TV-type transactions. Advertisers have said it was always a hard sell for Meta because brands could always buy on-demand in the scatter marketplace whenever they wanted to reach Facebook and Instagram. “I think they never hit the volume that would justify keeping it open and in general they are trying to streamline the ad offerings,” said Noah Mallin, chief brand strategist at IMGN Media, referring to Meta’s new video ad strategy. “I don't think it's a huge deal in the greater scheme of things, but they have so many offerings that sales teams are looking to streamline and monetize things like Reels more effectively.” Read also: 11 'granfluencer' accounts changing influencer marketing Meta still sells in-stream ads, they just won’t be ordered on reserve; advertisers can get them in the ad auction, which has always been an option, too. In-stream ads are accessible through Meta’s Ads Manager. The advertiser chooses what types of placements to go for—whether Reels, Stories videos, in the feed, or in-stream, or all of them and on all Meta apps—and the ad machine does the calculus as to which will perform best. Meta also still deploys independent measurement services, so marketers can gauge the reach of campaigns by applying Nielsen tags to in-stream ads bought by auction and Reels ads, a Meta spokesperson said by email. Meta’s strategy is to stand-up Reels to keep users engaged, and to make it a viable advertising moneymaker. Meta is developing AI to improve content recommendation, trying to get on par with TikTok’s algorithm to keep users interested and scrolling through videos. Meta has also acknowledged that Reels do not make as much money as in-feed ads and other inventory. Read more: How Meta is embracing generative AI The old in-stream reserve program was also used as a “brand safety” lever for some brands because it provided some control over the videos in which their ads ran. Meta declined to comment beyond its announcement for this story. However, Meta is still building new brand safety tools for advertisers. Last year the company started working with Zefr, a third-party measurement firm, which can report to advertisers some details about the context surrounding ads, and whether those placements were in line with a brand’s suitability guidelines. The loss of in-stream reserve is part of the new reality on social media, where the audience is spending more time on short-form videos posted by random creators, rather than watching long, polished videos, according to Whitney Wolf, director of strategy at Superdigital, a creative agency. “This all points to the larger trend that every platform is gravitating to new ways to make short-form video take off,” Wolf said. Advertisers are also not looking to be locked into reserved ads as much, given the economy and tighter marketing budgets, and buying by auction keeps them “agile and nimble,” Wolf said.

Meta prioritizes TikTok-style videos as it drops in-stream reserve ads

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