Facebook Reels has proven to be a popular way for creators to expand their influence on the platform. As a result, Meta is testing overlay ads placed over videos to reward creators for their hard work.
The overlay ads update is a big change and brings creators an innovative method of Facebook Reels monetization.
In this article, you’ll learn about what overlay ads are, how they work, and how you can make money with them.
What Are Facebook Reels?
According to Meta, Reels are “a new way to create short, entertaining videos [and] get discovered by new audiences … on Facebook.”
Reels is a platform for creating short videos that Meta recommends to anyone who might like them. Once only available on Instagram, Meta added Reels to Facebook in late 2021.
In real terms (pardon the pun), Reels are Meta’s response to TikTok. It’s no secret that TikTok has poached a huge portion of Meta’s younger audience. In response to that mass emigration, Meta created Reels to win them back.
Reels follows the same format as its ByteDance counterpart, with a few caveats:
- TikTok allows much longer videos (up to ten minutes)
- TikTok has stitch, a feature that allows users to clip their own videos onto other TikToks
Reels also offers creators ways to make money that TikTok doesn’t. Overlay ads are one example.
Facebook Reels Monetization: The Story So Far
Until the overlay ads update, Reels offered no direct compensation to users. The primary form of income for Facebook influencers came from long-form video ads.
While Meta did monetize Reels, it was only for advertisers’ benefit rather than creators. Reels users may have seen traditional Facebook ads in their Reels feed. However, none of those benefited the creator.
Reels, being a new addition to the platform, was more of a gimmick for serious creators. Meta very much wants to change that.
Consider the context for Reels. Facebook and Instagram Reels are a top priority in Meta’s battle against TikTok. As a matter of fact, CEO Mark Zuckerberg mentioned “Reels” more than 20 times in a recent earnings call.
It’s clear Meta is doing whatever it takes to make Reels a success. Overlay ads are a massive part of that effort.
What Are Reels Overlay Ads?
Overlay ads are banners and stickers appearing over Facebook Reels. Since they’re small and transparent, viewers can view ads without interruption.
To be clear, ads are not new to Reels. Meta has been running ads on Facebook and Instagram Reels since 2021. What’s new is the arrival of controlled overlay ads that share revenue with creators.
Creators may choose between banners and stickers. If they decide on banner overlay ads, Facebook will place them at the bottom of the video. However, if they select sticker overlay ads, they’ll be able to put them anywhere on the screen.
When overlay ads appear in creator Reels, they receive a part of the advertising revenue. That smooth integration makes them an effective method of Facebook Reels monetization.
Do Facebook Reels Ads Pay Well?
Overlay ads will offer the 55% of ad revenue awarded as part of the in-stream Facebook ads program. All reels are monetized the same regardless of length.
Yet, the money doesn’t stop there. In 2021, Meta promised to pay one billion dollars to the Reels community the following year. This investment has led to a bonus program paying impressive sums to top Reels creators.
Reels Bonus Program
Meta’s bonus program lets some creators earn extra cash on top of their standard ad revenue.
The gist is simple: hit a views quota and get a cash bonus for the deed. These quotas are tailor-made for creators based on the reach they have.
These bonuses mean an extra couple hundred dollars for some creators. Other creators received rewards large enough to buy a new car.
For example, the program offered one creator $8,500 to reach 9.28 million ad views in one month. Meta also offered influencer Veronica Cannady $35,000 for 50 million views. While she didn’t achieve her goal, she still took home $22,000.
Am I Eligible for Facebook Overlay Ads?
Users eligible for Facebook’s in-stream ads can now start using overlay ads. To enroll in the in-stream ads program, users must meet the following requirements:
- At least ten thousand followers
- 600,000 minutes of content watched within 60 days
- At least five videos published live on Facebook
Overlay ads were only available in a few select countries until recently. However, this new method of Facebook Reels monetization has now expanded to most countries.
If you find overlay ads are still unavailable in your area, you likely won’t need to wait long until they are.
How to Start Using Facebook Reels
Once you’re registered, getting started with overlay ads is a piece of cake. First, you’ll need to decide between the two formats discussed above:
If you select banner ads, Reels will insert them at the bottom of the screen. For sticker ads, you have to place them for each video. Users who want to opt out of banner ads can do so from the Creator studio.
Setting Up Sticker Overlay Ads
Sticker overlay ads give you more visual control over your Facebook Reels monetization. To set them up, follow these steps:
- Create a reel
- Select “Stickers” in the menu located on the right
- Pick “Ad“
- Select “Add Sticker Ad“
- Change the sticker’s position according to what best fits your Reel
Remember to keep your stickers as unintrusive as possible. If you annoy your viewers, they’ll be less likely to engage with your content.
Also, keep in mind that neither banners nor stickers guarantee a Reels ad placement. Neither design allows you to select the ad you display either. Meta places overlay ads according to their internal Facebook monetization scheme.
Are Facebook Reels Ads Worth It?
Given the generous benefits available, Facebook Reels ads are a worthwhile investment for creators.
As mentioned above, Meta is in the middle of an epic battle with TikTok for market dominance. As a result, Meta is desperate to make Reels more attractive to creators — the soul of any media platform.
To remain competitive in this battle, Meta offers more benefits by the day. Initiatives like the billion-dollar bonus program are likely the beginning. If you want to cash in on this mega-brand battle, there’s no time like the present.
In addition, brands love influencer Reels for their targeted lead generation potential. This presents opportunities for creators to make money with director sponsorship.
All-in-all, there’s tremendous earning potential with Facebook Reels ads. Reels is ripe with opportunities for creatives seeking extra income.