New ad formats have been introduced by Meta: they are being deployed in the Reels section of Instagram to open up new revenue streams for short videos and business messaging.
They see these as the key to growth this year, and in a blog post they specifically addressed the new advertisements, from which both they and their content producers can earn even more money.
Reels is now fundamentally important for Meta, on the one hand because of the great success of TikTok, and on the other hand because of the deteriorating economic situation and Meta’s advertising problems and declining sales. With the new ads, it’s hoped that even more Reels producers will get behind Instagram to make money by placing ads in their content.
We can also expect advertisements that open a direct conversation between the company and the potential customer: artificial intelligence will be used to optimize who is targeted by such advertising, who is most likely to buy. Advertisements are also displayed in users’ Instagram feeds on an AI basis. In a previous test involving 400,000 advertisers, they found that this AI-based approach resulted in more purchases than any other ad in the news feed. In addition, advertisements appear in other places, for example on the Explore tab.