How Will Meta’s New Ad Formats and Brand Controls Boost Growth?

Meta introduced a basketful of new spaces available for advertisers on both the Explore page of Instagram, within Facebook Reels, and on creators’ pages. 

New ad formats for Facebook and Instagram 

The company said in a blog post that it focused on building products for businesses that meet people where they are.

“We’re announcing new ways for advertisers to reach customers in a range of ways based on how they are spending their time—whether through video, messaging, ads or AI-enhanced experiences—and updates on our ongoing efforts with industry partners.”

It is testing new skippable ‘post-loop’ video ads on Instagram Reels. Other product updates for advertisers include a music catalog, a new ad format for Facebook Reels, and ads on the Explore home page and user profiles.

A test of ads in creators’ profile feeds will give creators a monetization option. They will be able to make additional income from ads within the content they already have.

The company will run 4- to 10-second skippable post-loop ads and standalone video ads after a Reel has ended. It also tests horizontally scrollable carousel ads displaying 2-10 images at the bottom of a Facebook Reel. Additionally, Meta introduced new ad placements and formats for Instagram – AI-powered multi-advertiser ads and Explore home and profile feed ads for businesses.

Another ad product includes an open beta test of Augmented Reality (AR) ads in both Feeds and Stories on Instagram, where brands can encourage people to interact with an effect through their surroundings, such as testing furniture in their home or test driving a car.

Meta also revealed brand safety updates the marketing community had been waiting for. Instagram and Facebook feeds will now incorporate brand safety risk tolerance controls, allowing brands to control content proximity (low, medium, high). As an added benefit, brands will also have access to third-party reporting, which will let them know where their ads appear, thanks to ad tech partner Zefr’s technology.

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Marketers Perspective

A new ad revenue opportunity for Meta and creators who make money off the platform. Adweek reports that for in-Reel Facebook ads, creators would get 55% of the revenue, while Meta would get 45%. There are still some details to work out concerning revenue sharing with creators’ pages, but It is unlikely that they will be able to earn a significant income.

In the meantime, buyers aren’t prioritizing the formats, as Meta still needs to fix other glitches on its platform. In addition, some worry that the platform might become overcrowded with advertisements. Also, the macroeconomic headwinds looming have prompted Meta to freeze hiring. However, advertisers may warm to the new offerings. They are equating inventory to lower CPMs (cost per thousand impressions). New offerings build additional inventory on the platform hence marketers look forward to seeing lower bids in return.

The new suitability tools and controls are under testing mode and will be rolled out in 2023. Advertisers will have more control over how the ads will appear on the platform as well as early insights on the future of shopping in the metaverse.

Interesting Read: Meta Audience Network Announces Rewarded Interstitial Ads