The evolution of short-format video creation has witnessed it all, from being introduced as a diverse form of amusement to becoming a means of subsistence. As Meta puts hold on bonuses for creators on Facebook and Instagram, multitudes already rely on creating such forms of video content for their upkeep.
Introduced as a program in 2021, the objective of Instagram Reels Play was to persuade creators to engage themselves in initiating more short videos and offered creators monthly incentives based on engagement and other data metrics like view counts. Now that the bonus offered by Meta is scrapped, it is estimated to have larger implications for Reels creators on Facebook and U.S.-based creators on Instagram as the Instagram bonus program was only limited to creators residing in the U.S.
Also Read: Meta Announces New Facebook Reels Features Expanding Reels Length to 90 Seconds
Now that you are confused about how this will affect creators, then for informational sources of our readers, let us remind you that Reels undoubtedly was the bread butter for many when popular videos and creators used to generate a lump sum of more than $10,000 in bonuses, and to the luck of some even $35,000 in a month. Reels was a competition to TikTok’s popularity and Meta’s targeted investment of over $1 billion into the creator monetization program was a blow to the rivals.
As per reports, Meta is carrying its evolution to a state where the expansion of its new and renewed Reels Play deals for creators on Facebook and Instagram US creators will be curbed, or precisely the bonuses will be offered to creators in more targeted ways if Reels enters a new market. Confused, eh? While Reels already has its dimensions in more than 150 countries, we are yet to gain clarity about what Meta actually means by saying this, in the future.
On the contrary or as hints, Tom Alison, Head Of Facebook in this blog post states, “Over the years we’ve built one of the most robust monetization offerings of any creator app so that creators can earn money in ways that make the most sense for them. This year, we’re focused on adapting and enhancing these tools for short-form video. We’ll continue expanding our ads on Facebook Reels tests to help more creators earn ad revenue for their Reels and grow virtual gifting via Stars on Reels.”
Considering the popularity of short videos around the globe, Meta seems avaricious towards ad money. Last year, Meta expanded Overlay Ads as Banner Ads and Image Carousel Ads for advertisers and creators in more than 50 countries in addition to in-steam ads. As a commissionable share for all these ads, the company holds 45% of the revenue and shares the rest 55% with the creators.
2022 has been a hard hit for Meta and its founder Mark Zuckerberg. Mark lost more than half of his fortune in a year as a result of their failed strategies. In its quarterly report announcement for Q2’2022, Zuckerberg expressed that the growth in user engagement with reels saw an increase of more than 30% and the revenue from Reels reached a $1 billion annual revenue rate. However, the Earnings Call Transcript for Meta’s Q4 2022 mentions Reels not making enough profits yet for the company. It also mentions their targets and developmental plans for Meta’s goals to funnel more money.
“The next bottleneck that we’re focused on to continue growing Reels is improving monetization efficiency, or the revenue that’s generated per minute of Reels watched. Currently, the monetization efficiency of Reels is much less than feed, so the more that Reels grows, even though it adds engagement to the system overall, it takes some time away from feed and we actually lose money.”
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This news may come as a disappointment to some creators, it seems like Meta’s decision is based on the analysis of the current market. Other avenues for monetizing content and building brand for creators like Snapchat and YouTube Shorts also have embraced ad revenue-sharing models. As they aim to generate profitable funds by the end of this year, let’s see what goes in their favor as Meta puts hold on bonuses for creators on Facebook and Instagram. Let us know your views in the comments box below.
Source: Meta Newsroom