Facebook is expanding its platform for monetizing ads in order to reel in more content. You should know about the new overlay ad formats available to content creators.

Facebook is starting to monetize its reels platform with overlay ads. As a result, users have another way to monetize their content.

Reels will be monetized gradually. By March 13, overlay ads will be available in nearly all countries that currently have in-stream ads.

Now let’s dive deeper into the details.

The use of overlay ads in reels is explained.

This is a completely new way to display ads for Facebook that they are testing. The overlay ads for Facebook will be in two formats:

  • Banner ads are very common in the industry.
  • The ad also features sticker ads.

These two ad formats are combined and placed on top of Facebook reels in a transparent format. Hence, viewers who have chosen to follow the creators of content will be able to watch that content uninterrupted, while being subtly introduced to relevant ads that will be shown to them.

Examples of Facebook Overlay Ads in Reels.Image credit: Facebook, February 2022.

If a particular format is used, the place of the overlay will vary.

So for the banner ads, they will appear at the bottom of each facebook reel.

So, in the format of sticker ads, the content creator chooses where the overlay appears on the reel.

Facebook reels that you should be eligible to monetize with overlay ads.

The new format test for ads is not available for everyone yet.

You must be part of the in-stream ads monetization program that Facebook runs. To be eligible for using overlay ads, click here. There is no need for you to opt into that feature.

If you are unsure of your eligibility for in-stream monetization, Facebook has a page to check for eligibility and to sign up.

Facebook is trying to increase the number of eligible users for its in-stream ads in the coming months, opening up more opportunities for content creators.

When overlay ads are added to your reel, you will get a portion of the advertising revenue. Facebook doesn’t provide any exact amount.

How can you get started with overlay ads?

In-stream advertisements monetization program. If you’re eligible, you’ll be automatically opted to display banner ads. On the other hand, this does not mean that every reel must contain an ad.

It is possible to show banner ads on your reels. It depends on various factors, including:

  • Advertising and targeting settings.
  • Worth of an ad for the viewers.

There is an option for you to opt-out of seeing banner ads on your reels by going to the meta creator studio.

In order to add sticker ads to your reels, there are some steps that need to be taken.

  1. Tap on the right-hand side of the menu panel to apply sticky stickers (after adding your own creative to the reel).
  2. Tap on the button to add it below the stickers tab.
  3. Tap on “add sticker ad” to add it.
  4. Move the sticker ad frame in order that it fits in the reel the best.

You are allowed to select where the ads are displayed, but you are not permitted to select the actual ads that are displayed. Facebook will decide which ads to show to the individual users who view your content.

Like banner ads, if you include the option to show sticker ads, keep in mind that sticker ads will not always be shown on every reel.

Why are overlay ads so important?

Facebook is determined to invest $1 billion in content creators. By adding tools such as overlay ads to your reels, you can become a trusted business on Facebook.

Creating quality content takes both time and money. When you become part of this ad monetization program, we will give back to you a portion of the revenue that you earn, so that you can spend more time creating quality content for the meta platform.