Facebook, owned by Meta, is changing things up with its advertisements to draw more content creators to its original platform. The social media company is switching to a performance-based payment model to give creators a new avenue for income.
Embracing the new changes
In the past, Facebook gave creators a part of the ad revenue from video ads of 55%. But a new era is starting to emerge. More than just pre-rolls on long-form videos, creators will receive payment based on the number of views they receive for all ad formats.
The performance-based concept is not brand-new; Facebook Reels has been using it in place of the outmoded Reels Play program. Through the option to enable Ads on Facebook Reels, creators can embrace this novel strategy and open up revenue opportunities without attached ad impressions.
Perks and possibilities
Although some content creators may see fluctuations in their earnings, Meta thinks there are a lot of benefits to this new monetization option. “We’re learning through our tests that payouts tied to performance are better at balancing the needs of everyone,” Meta stated in their blog post.
Meta follows suit with social media companies that have begun implementing performance-based compensation plans. Similar decisions were taken by TikTok when it replaced revenue streams based on traffic figures for its fixed-pool Creator Fund.
Multiple revenue streams
Instagram, another website owned by Meta, is still doing well in the influencer marketing space even as the new incentive program takes shape. Meta also intends to roll out more ad formats. It remains to be seen if creators will take advantage of this opportunity to start making content on Facebook. When asked the same question, Meta’s creator team hopes a resounding “yes” from the community.