Meta Launches Threads: Advertiser Q&A

Meta Launches Threads: Advertiser Q&A

by Taylor Hart Instagram Meta Threads Twitter

In just five days, Meta’s Threads app has become the fastest-growing app in history, with 100 million users, and counting. Threads is basically a Twitter clone, and because it’s connected to a user’s Instagram account, so far both brands and people alike have been posting content that pretty much resembles what they’d post on Twitter and Insta. Let’s take a closer look at Threads by answering some commonly asked questions brands might have about it.

What exactly is Threads, and why does it exist?

As noted, Threads gives its user base a place to post the same kind of rapid-fire posts that they share on Twitter and Instagram. There is a 500-character limit for posting. Users can respond to each other’s posts, and they can link to photos, video, and external URLs as with Twitter. It’s one of a handful of Twitter rivals, including Bluesky and Mastadon, that have emerged to challenge Twitter’s long-established lead as a micro-blogging platform.

Interest in Threads has intensified in light of Twitter’s ongoing service problems and a reported rise in hate speech on Twitter, which has made the app less appealing for both brands and everyday users. Twitter has 354 million users – which is a sizable audience, making it tempting for a rival to create its own similar platform. But Twitter is a firmly ensconced platform. It would take someone with a lot of clout to rival the company. Meta has that kind of clout.

How do you sign up for Threads?

You need to have an Instagram account to sign up. From there, you download the app from your iOS or Android device.

Wait – I have to have an Instgram account to sign up for Threads? What are the implications of Threads being connected to Instagram?

Yes, you need to be on Instagram to be on Threads. Technically, Threads is in fact a stand-alone social network with its own app, but you need Instagram to sign up for it.

When you sign up for Threads, you can choose to auto-follow all of the accounts you follow on Instagram. This means that if your Instagram followers also sign up for Threads, they will automatically start following you back.

This is a great way to grow your Threads following quickly. However, it’s important to note that not everyone who auto-follows you will be interested in your content. So, it’s still important to post high-quality content and engage with your followers.

But what if you don’t want to be on Threads anymore? Well, if you decide you don’t like Threads, you cannot delete your Threads account unless you also delete your Instagram account.

If you violate Threads’s community guidelines and get your Threads account banned, your Instagram account will also be banned. To change your Threads username, you must also change your Instagram username.

How did Threads get so big so fast?

It’s all about the Instagram integration. Threads has instant access to Instagram’s 2.35 billion monthly active users. Meta made it easy for anyone to sign up through Instagram – and that’s not all. Meta also made it easy to import your Instagram profile. The auto-follow button, which allows your new Threads account to follow every account you follow on Instagram, created an instant Threads following for anyone on Instagram.

What kind of content should I post on Threads?

For now, businesses and people are posting the same kind of content that they post on Twitter and Instagram. So, what’s good for those platforms will be just right for Threads. Remember, your initial following comes from your Instagram audience – so it makes sense to be as visual as you can.

Social Media Manager Bri Reynolds suggests that you go grab your top-performing evergreen tweets, post one or a few as your initial Thread content. You’ve already proven they’re successful elsewhere.

Down the road, as Threads evolves, brands might develop a separate content strategy for Threads. But for now, Threads has quickly become a platform for cross-posting.

What caveats should I be aware of?

As noted above, if you want to delete your Threads, you need to delete your Insta.

Threads lacks a lot of functionality that users have become accustomed to on other platforms, including a lack of hash tagging and direct messaging capacity. There is no desktop version, and there is no chronological feed (although Instagram says a chronological feed will be coming soon).

Threads collects the same data as its parent company. This includes users’ physical addresses, health and fitness data, and sensitive information such as biometric and ethnic data. Twitter, on the other hand, does not collect these types of data.

Being present on Threads could become burdensome to your social media team. There is a tremendous amount of pressure for brands to experiment there. Make sure you have the bandwidth.

Is advertising coming to Threads?

Not yet. But as reported in Advertising Age, Meta is talking with ad agencies and brands about how the platform will work and has shared a presentation with several agencies outlining how Threads could potentially become the new Twitter. Meta has told advertisers that it will ensure brand safety by applying Instagram’s own community guidelines. If you want to get an early take on how Threads advertising will work, Instagram’s own ad units are a good place to start given the integration of the two apps.

Here are some specific examples of how Threads advertising may work (based on the Instagram experience):

  • Advertisers may be able to target their ads to users based on their interests, location, or demographics.
  • Ads may be displayed in the form of sponsored posts, promoted stories, or promoted video.
  • Ads may be placed alongside organic content in the Threads feed.

It is still too early to say exactly how Threads advertising will work, but one thing is certain: ads will come to Threads.

Contact True Interactive

At True Interactive, we’re following the rise of Threads closely. To succeed in the ever-changing world of online advertising, contact True Interactive. Read about some of our client work here, and learn about our social media services here.

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Why Meta’s Lattice Architecture Matters

Why Meta’s Lattice Architecture Matters

by Taylor Hart Artificial Intelligence Meta

Meta continues to demonstrate resilience. In 2022, the company took at $10 billion hit to its bottom after Apple’s privacy controls diminished Meta’s ability to target users with advertising that relies on third-party cookies. Since then, Meta has been developing better ad products that help the company develop targeted ads via first-party data, or the information that customers share with Meta on its apps such as Facebook and Instagram. Meta recently announced a potential breakthrough with Meta Lattice, which uses AI to improve ad targeting.

What Is Meta Lattice?

Meta Lattice is a new model architecture developed by Meta AI that improves the performance and efficiency of Meta’s ads systems. Meta Lattice is a high-capacity architecture that allows the ads system to understand new concepts and relationships more broadly and deeply in data. Meta says this benefits advertisers through joint optimization of a large number of goals.

Meta Lattice is also capable of generalizing its learnings across domains and objectives. This means that it can be used to improve the performance of ads across a variety of apps, such as Facebook, Instagram, and WhatsApp. Meta also says that Lattice can be used to improve the performance of ads even as the way people use Meta’s products changes.

The Potential Impact of Meta Lattice

Here’s a good before/after way to demonstrate the impact of Lattice.

  • Before: Meta had segmented advertising data. Meta maintained distinct datasets for ads presented in feeds, stories, Facebook and Instagram video reels, and other formats. This was also true for objectives, as ads targeting conversion, traffic, and video views were kept separate.
  • Soon: Meta will unify all this information using AI. With Meta Lattice, the platform will decipher patterns that result in enhanced ad performance across various ad formats, objectives, and types. This unification presents Meta’s machine learning algorithms with a larger dataset for learning. According to Meta, this implies better predictions for identifying the most suitable audience for your advertisements, resulting in more conversions through your Facebook Ads Manager — if Lattice does its job.

Meta Lattice is still under development, but it has already shown results. Meta says that in one test, Lattice was able to improve the click-through rate of ads by 10 percent. Meta Lattice is expected to be used to improve the performance of Meta’s ads systems in the future.

Potential Benefits

Here are some of the potential benefits of Meta Lattice:

  • Improved performance: Meta Lattice is able to improve the performance of ads by understanding new concepts and relationships in data.
  • Improved efficiency: Meta Lattice is able to generalize its learnings across domains and objectives, which makes it more efficient to use.
  • Faster adaptability: Meta Lattice is able to adapt to the fast-evolving market landscape, which makes it more effective at delivering relevant ads to users.

It is important that advertisers understand how Meta is developing new ad products. For instance Meta’s Advantage+ ads provide performance marketers advancing ad targeting tools.

As these AI-based platforms evolve, they may become more significant drivers of response, which could help you target the right audience for your offerings without needing to manually set the parameters of each campaign. However, we caution against any advertiser turning over the keys to AI. Advertising campaigns require human supervision to ensure that they continue to meet your objectives. AI advertising tools require human oversight to ensure that its output is accurate, free of bias, and consistent with your brand voice, among other needs.

Contact True Interactive

To succeed in the ever-changing world of online advertising, contact True Interactive. Read about some of our client work here.

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Why Meta Reported a Strong First Quarter for 2023

Why Meta Reported a Strong First Quarter for 2023

by Patrick Wool Meta

Meta’s ad business is back on the upswing, and AI is a big reason. On April 26, Meta reported its first increase in sales in nearly a year because of an improvement in its advertising business. This happened because Meta’s short-form video feature, Reels, is gaining more engagement thanks to Meta’s use of AI to target Reels more carefully to its user base. More engagement means more ad revenue. 

What Meta Announced 

Meta reported revenue of $28.6 billion, up 3 percent from a year prior and ahead of expectations of nearly $27.7 billion, according to analysts surveyed by FactSet. That snapped a streak of three quarters in which Meta’s revenue had declined from the year prior (The drop was the only time that has occurred since the company went public in 2012.) The 3 percent increase is an improvement from the 4.5% drop in revenue that the company posted in the final quarter of 2022. This is a notable turnaround for a company that spent the better part of 2022 regrouping after Apple’s consumer privacy controls ate into Meta’s ad revenues.

In his formal comments on the quarter, CEO Mark Zuckerberg attributed the growth largely to the popularity of Reels, which is Meta’s answer to TikTok’s influential short-form videos. He said that Reels are growing quickly on both Facebook and Instagram.

“Reels also continue to become more social with people resharing Reels more than 2 billion times every day, doubling over the last six months,” he said. “Reels are also increasing overall app engagement and we believe that we’re gaining share in short-form video too.”

He also said that more than 3 billion people use at least one of Meta’s apps each day.

Meta daily active users

Zuckerberg attributed the uptake of Reels to the way AI makes more personalized Reels recommendations for Meta users to watch, which, in turn, encourages advertisers to create targeted ads.  

He observed, 

Our investment in recommendations and ranking systems has driven a lot of the results that we’re seeing today across our discovery engine, Reels, and ads. Along with surfacing content from friends and family, now more than 20% of content in your Facebook and Instagram feeds are recommended by AI from people, groups, or accounts that you don’t follow. Across all of Instagram, that’s about 40% of the content that you see. Since we launched Reels, AI recommendations have driven a more than 24% increase in time spent on Instagram.

Our AI work is also improving monetization. Reels monetization efficiency is up over 30% on Instagram and over 40% on Facebook quarter over quarter. Daily revenue from Advantage+ Shopping Campaigns is up 7x in the last six months.

Meta Advantage+ Shopping Campaigns, introduced in 2022, are automated shopping campaigns that use machine learning by dynamically serving your ads to audiences most likely to convert while better utilizing your advertising budget. The product eliminates manual ad creation steps and according to Meta, “automates up to 150 creative combinations at once.”

Why the Meta News Matters

This news matters for two reasons:

Meta’s growth amid a challenging economic climate is also good news for the entire digital advertising industry. It’s a sign that advertisers are willing to continue investing in their brands during economic uncertainty.

What Advertisers Should Do

  • Experiment with products such as Meta Advantage+ Shopping Campaigns to understand how AI is influencing the advertising landscape.
  • Be open to trying other new Meta ad opportunities depending on how you engage with your customers and prospects. For example, Mark Zuckerberg told investors on the April 26 earnings call that Meta is building out business messaging “as the next pillar of our business.” He noted that last quarter its click-to-message ads reached a $10 billion revenue run-rate. Since then, the number of businesses using our other business messaging service — paid messaging on WhatsApp — has grown by 40 percent quarter-over-quarter.

At True Interactive, we advocate for our clients that invest in Meta and other platforms. We will continue to monitor developments and adapt our ad strategies as needed.

Contact True Interactive

To succeed in the ever-changing world of online advertising, contact True Interactive. Read about some of our client work here.

Image source: Alexander Shatov on Unsplash

Why the Demise of the Google/Meta Ad Duopoly Is Good News

Why the Demise of the Google/Meta Ad Duopoly Is Good News

by Tim Colucci Google Meta Walmart

Recently there’s been some considerable discussion about the demise of the so-called advertising duopoly. This refers to the speculation that Google’s and Meta’s dominance of the online advertising industry is fading as their share of online advertising shrinks. As reported widely, Google and Meta are expected to bring in less than half of all U.S. digital advertising in 2023 for the first time since 2014. Here’s what the number say:

  • Google and Meta will together capture 48.4 percent of all U.S. digital ad revenue in 2023 — 28.8 percent for Google and 19.6 percent for Meta — down from 54.7 percent at their peak in 2017, when Google’s ad revenues account 34.7 of the market, and Meta accounted for 20.0 percent. per data from Insider Intelligence.

But let’s not shed any tears for Google and Meta. They are doing just fine. Google generated an astounding $282 billion in advertising in 2022. And Meta, following a difficult 2022, is rebounding strongly as the business shifts its advertising model from tracking third-party cookies to first-party customer data.

No, the duopoly isn’t fading, exactly. But the online ad world is getting more crowded. For instance:

Amazon Ads is nearly a $40 billion business.

  • TikTok is expected to earn $8.6 billion in ad revenue in 2024 – assuming TikTok doesn’t get banned in the United States.
  • A host of retailers ranging from Walmart to Walgreens have entered the online advertising, business. They’re using Amazon Ad’s blueprint: tap into the consumer behavior data they collect from their own customers (known as first-party data) to develop targeted ad products. Retail media at the global level is forecast by WARC to be the fastest-growing marketing channel this year, reaching $122 billion in revenue.
  • Several companies outside of retail such as Airbnb and Uber are doing the same thing with their first-party data as retailers are: developing ad businesses. They’re smaller, but they are significant.

The growth of Walmart’s ad division, Walmart Connect, is an example of how varied the online advertising world has become. Recently Walmart said that Walmart Connect grew 41 percent year-over-year in the fourth quarter of 2022. Its ad operations were up 20 percent over the period and jumped nearly 30 percent in 2022, generating $2.7 billion for the full year.

Walmart enjoys a significant advantage: it operates a strong eCommerce business to complement its mammoth chain of retail stores. This gives the company a large audience online and offline to develop and deliver targeted ads. During the runup to Black Friday during the 2022 holiday season, Walmart even enjoyed stronger search traffic than Amazon did.

Walmart has developed several ad units. They include:

  • Search to make products found on Walmart’s digital sites such as Walmart.com.
  • Display on Walmart’s site and across the web.
  • In-store to make a brand visible on digital ads in Walmart stores, such as in self-checkout lanes, or as a “commercial” on in-store TVs adding to the number of replacements for linear TV.

A number of businesses, such as Kraft Heinz, report improvements in sales lift by working with Walmart on ad campaigns across Walmart properties.

The rise of alternatives to Google and Meta is good news for businesses for a few reasons:

  • More competition gives advertiser more choice. The rise of retail networks is a good example. Businesses can tap into more refined first-party data from each retailer to target different audiences. For instance, the Macy’s media network gives advertisers entrée to a more style conscious consumer.
  • More competition means that Google and Meta need to improve their own ad products. For instance, the popularity of TikTok has forced Meta to develop short-form video content, Reels, with ad products to go with them.

We suggest advertisers capitalize on the proliferation of ad platforms wisely. Focus on the platforms that provide the strongest ROI while experimenting with emerging platforms that are aligned with an audience you have been wanting to reach (e.g., TikTok for Gen Z) and channels that are untapped to you.

At True Interactive, we can help. We possess experience with both the established ad platforms and emerging ones. Learn about our services here.  Contact us to learn how we can help you.

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How Meta Is Rebounding

How Meta Is Rebounding

by Taylor Hart Meta

Meta is back.

The company’s market capitalization lost considerable value in 2022 after failing to meet its financial targets. A costly investment into the emerging metaverse has been ridiculed. But Meta is showing signs of a much brighter 2023.

The Wall Street Journal recently reported that:

  • The company’s investments into artificial intelligence (AI) have helped Meta improve ad-targeting systems to make better predictions based on less data.
  • Meta’s short-form video product, Reels, is becoming more popular on Meta’s core Facebook and Instagram platforms.
  • The development of ad products based on user data from Meta’s own platforms is easing the blow of Apple’s privacy restrictions. Those restrictions, focusing on ad products that rely on third-party user data, had forced Meta to retool its ad strategy away from third-party user tracking to first-party data (the information that Meta gains from users from its own platforms such as Facebook and Instagram).

Reels Gains Traction

All of these developments are noteworthy. For instance, Reels is Meta’s answer to TikTok, whose dramatic rise, based on short-form videos, has threatened Meta. So, more user engagement with Reels should attract more advertisers.

The Wall Street Journal said that Tom Alison, head of Facebook, wrote in a memo to staff, “Facebook engagement is stronger than people expected. Our internal data indicates that Meta has grown to a meaningful share of short-form video.” And on Facebook alone, Meta can count on a large, engaged user base.

Facebook engagement

Reportedly, Meta has credited improvements to both Facebook’s algorithms and the computing systems on which they run, resulting in a 20 percent gain in time spent in Reels consumption. This is quite a turnaround from summer 2022, when Meta was still struggling to get users to embrace Reels videos.

More Effective Ad Products

Meta suffered a blow in 2021 when Apple introduced privacy controls that resulted in people opting out of having their online behavior tracked while using Apple products. This was a problem because Meta’s ad products rely mostly on tracking people across the web via third-party cookies. The privacy controls have forced Meta to do a better job building ad products based on user behavior on Meta’s own platforms (which Apple’s privacy controls do not affect).

Meta estimated last February that the Apple change would cost it more than $10 billion in lost sales for 2022, equivalent to about 8 percent of its total revenue for 2021. At the time, the news caused Meta’s stock price to plummet.

But Meta is gaining traction with new ad products. For instance, Meta’s broad targeting ad program consists of an automated targeting approach that reportedly produces better results for Facebook and Instagram ads than more refined, more niche audience approaches do. Meta is also developing ads in which users click straight into a messaging conversation with a business.

But ads based on first-party data are only 18 percent of Meta’s revenue, according to The Wall Street Journal. Meta has a lot of work to do.

Key Issues Going Forward

Meta recently reported better-than-expected results in its most recent quarterly earnings announcement. CEO Mark Zuckerberg said 2023 is a “Year of Efficiency,” which means managing spending carefully. Key questions going forward:

  • How well Meta will use AI to recommend Reels content to Facebook and Instagram users. The more targeted the recommendations, the higher the engagement rates. Meta needs people to stay engaged on Reels like they are glued to their TikTok videos. Engagement means advertising revenue from businesses that want to target those users with content.
  • The performance of ad products based on first-party data. Businesses should continue to ask their Meta ad representatives for developments in this area.
  • How well Meta manages its costly investment into the still young metaverse, which remains a sore spot for the company. The metaverse generates no advertising revenue streams to speak of for Meta.

At True Interactive, we advocate for our clients that invest in Meta and other platforms. We will continue to monitor developments and adapt our ad strategies as needed.

Contact True Interactive

To succeed in the ever-changing world of online advertising, contact True Interactive. Read about some of our client work here.

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Are Meta’s Problems as Bad As They Seem for Advertisers?

Are Meta’s Problems as Bad As They Seem for Advertisers?

by Héctor Ariza Facebook Instagram Meta

Just when you think things couldn’t possibly get worse for Meta, along comes another disastrous earnings announcement. On October 26, Meta, the parent of Facebook and Instagram, announced third-quarter earnings characterized by declining revenue and profits.

Quarterly revenue was $27.7 billion, down more than 4 percent from a year ago, after Meta posted a 1 percent decrease last quarter. Advertising revenue came in at $27.2 billion, down nearly 4 percent year-over-year (although that figure beat analysts’ estimates of $26.9 billion). Since advertising represents 98.2 percent of the company’s total revenue, the revenue drop is especially worrisome for Meta.

So, what’s causing the meltdown?

Weakening Demand

The biggest factor: diminishing demand for ad products caused by market uncertainty. In a call with investors, CFO Dave Wehner cited “weak advertising demand, which we believe continues to be impacted by the uncertain and volatile macroeconomic landscape.” CEO Mark Zuckerberg added that “. . . it’s not clear that the economy has stabilized yet so we’re planning our budget somewhat more conservatively.” As a result, Meta predicted that ad revenues will be $30 billion to $32.5 billion for the fourth quarter, below analysts’ expectations of $32.2 billion. (That level would represent another decline from a year ago, when total revenue was $33.67 billion.)

The TikTok Factor

The company, like Google, also faces rising competition from TikTok, whose popular short-form videos have generated a sharp increase in advertising revenue. According to Statista, TikTok generated $4 billion in advertising revenue in 2021, a figure that is expected to double by 2024 and triple by 2026. Digiday reported recently that ad agencies are shifting content creation from Instagram and YouTube to TikTok. In April, Insider Intelligence predicted that TikTok’s ad revenue will grow 184 percent to nearly $6 billion in 2023 (that amount tops Twitter and Snap combined).

To fight TikTok, Meta has given priority to the development and growth of Reels, its short-form video format on Facebook and Instagram. Meta is now seeing 140 billion Reels plays across Facebook and Instagram each day, which is a 50 percent increase from six months ago, according to Zuckerberg.

But Reels doesn’t monetize as effectively as the company’s other types of content. So, as Meta pivots toward showing more short-form video, Meta is taking a quarterly revenue headwind of more than $500 million, Zuckerberg told investors. Meta expects to get to a more neutral place with this shift within the next 12 to 18 months.

“As Reels grows, we’re displacing revenue from higher-monetized surfaces,” Zuckerberg told investors. “That’s clearly the right thing to do.”

The Apple Factor

Meta continues to grapple with the fall-out of Apple’s privacy controls, known as App Tracking Transparency (ATT). Meta said its average ad price decreased 18 percent on the year, as it adjusts to Apple’s changes that make it harder for Meta to track users and serve them personalized advertising. In the same quarter last year, the average price per ad climbed 22 percent.

But Meta also said that the blow to ad revenue caused by ATT is diminishing. Per CFO Dave Wehner, “Consistent with our expectations, the headwind to year-over-year growth from Apple’s ATT changes diminished in Q3 as we lapped the first full quarter post the launch of iOS14.5.”

But Apple isn’t done punishing Meta. Apple recently changed its App Store terms to take a portion of social-media advertising revenue. The policy change requires users and advertisers to make an in-app purchase when they pay to boost posts in apps like TikTok and Meta’s Instagram. Apple takes a commission of as much as 30 percent on in-app purchases, meaning a company like Meta would lose a portion of its ad revenue to the iPhone maker.

The company also faced stiff criticism from investors over its continued push into the metaverse, which has cost the company billions of dollars. Although the company’s metaverse investments technically do not affect its ad revenue – they’re more of a drain on profits than anything else – they have raised concerns that Meta is taking its eye off its core social media growth engine in the web 2.0 world.

The Good News

But on the bright side, Meta reported that:

  • Daily Active Users (DAUs) for the quarter were: 1.98 billion versus 1.98 billion expected, according to StreetAccount. That was up from 1.97 billion three months ago. 
  • Monthly Active Users (MAUs): 2.96 billion versus 2.94 billion expected, according to StreetAccount

Meta said Instagram now claims more than 2 billion monthly active users, while WhatsApp’s user base has surpassed 2 billion daily active users, with North America being the messaging app’s fastest-growing region.

What This Means for Advertisers

So, what does all this mean for advertisers? Well, now might be an opportune time to advertise on Meta, with its user base being strong and average ad prices decreasing. The company is rolling out new ad products to improve the monetization of Reels, and a new “Performance 5” framework, which is a set of five data-proven tactics that can help to improve advertising performance on Meta platforms amid tighter privacy controls. For instance, broad targeting consists of an automated targeting approach that reportedly produces better results for Facebook and Instagram ads than more refined, more niche audience approaches.

Meta, like its competitors, faces some difficult times amid economic uncertainty. But businesses that are taking the long view with their advertising efforts may turn out to be the winners so long as they don’t push the brakes on their online advertising efforts.

Contact True Interactive

To succeed with social media advertising, contact True Interactive. We have extensive experience helping businesses succeed on social media.

How Meta Is Defending Its Advertising Turf

How Meta Is Defending Its Advertising Turf

by Jessica Skopek Meta

Meta, the second-largest online advertising platform in the world, faces numerous challenges ranging from stricter privacy controls to the emergence of new competitors such as Amazon Ads and TikTok. Meta, like the market leader Google, is defending its position the best way it knows how: rolling out new ad products.

On October 3, Meta announced new ways for advertisers to reach the company’s user base, which encompass brands such as Instagram, Facebook, and Messenger. They include:

  • Post-loop ads on Facebook Reels. The skippable video ads, ranging from four to 10 seconds in length, play at the conclusion of a Reel, followed by the original Reel resuming and looping again. (Instagram Reels already have ads.)
  • Image carousel ads for Facebook Reels. These are horizontally scrollable and can include anywhere from two to 10 image ads. They appear at the bottom of Reels content.
  • Ads in creators’ profile feeds. These are aimed at giving creators another monetization option and will allow them to earn extra income from ads within the content they already have in their profile. This ad format is being tested with a small number of creators in the United States. A Meta spokesperson told Adweek that company will make it clear that creators are not affiliated with the ads that appear in their profile feeds.

Meta also announced new spaces available for advertisers on both the Explore page of Instagram, within Facebook Reels and on creators pages.

But wait – there’s more! Instagram also launched a series of ad formats. For instance, Instagram  is developing an open beta of augmented reality ads in feed and Stories. This makes it possible for brands to provide an immersive AR ad experience and encourage people to interact via their surroundings.

Instagram is also offering new multiadvertiser ads that use machine learning to serve ads from other businesses under an ad that may be of interest to the user. In theory these will help advertisers be discovered by Instagram users who are already in a shopping mindset. The new option is only enabled for direct-response objectives. Advertisers will have to opt in, with the opportunity to opt out whenever they choose.

The most interesting take-away from Meta’s new ad formats is the way Meta is trying to monetize the value of Reels for creators and Meta. For in-Reel Facebook ads, creators would get 55 percent of the revenue, while Meta would get 45 percent. The more consumers see Reels, the less time they spend in the legacy parts of the platform like the main feed.

In a July earnings call, CEO Mark Zuckerberg said, “We saw a more than 30% increase in the time that people spent engaging with Reels across Facebook and Instagram.” If creators of Reels can make money from their participation on these platforms, they could start to win back some of the audience Meta has been losing to TikTok.

Will Meta succeed? One concern advertisers shared with Adweek is that too many ad formats could create saturation. If users feel like their experience is cluttered with too many ads, their engagement with Meta platforms will decline.

But if monetizing Reels makes Meta a more attractive destination for creators, the format could provide a credible alternative to TikTok. For now, businesses should work with their agency partners to evaluate these ad products against where their audiences are most likely engaging with their brands. If you are already achieving strong results by advertising on TikTok, for instance, Meta’s new formats might not be necessary unless you aim to court Meta’s relatively older audience (compared to TikTok). But if you’re already looking for ways to reach Meta’s audience, and you’ve been using Meta as an ad platform, these formats may hold more appeal.

Contact True Interactive

To succeed with social media advertising, contact True Interactive. We have extensive experience helping businesses succeed on social media.