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FB - Facebook Inc News Story

$309.96 -5.5  -1.7%

Last Trade - 18/05/21

Large Cap
Market Cap £632.85bn
Enterprise Value £587.79bn
Revenue £66.79bn
Position in Universe 8th / 6846

UPDATE 1-Facebook begins testing ads in Instagram Reels

Thu 22nd April, 2021 11:32pm
(Adds detail from release)
    By Sheila Dang
    April 22 (Reuters) - Facebook Inc  FB.O  on Thursday said it
will begin testing ads on its TikTok clone Instagram Reels in
India, Brazil, Germany and Australia, as the social media giant
aims to make money from its short-form video feature.
    The company is seeking to capitalize on its popularity in
India, a fast-growing social media market, while rival TikTok
has been banned from the country since last year. Facebook has
said it plans to test other features in India, such as letting
content creators share Reels videos on their Facebook accounts.
    The introduction of ads is an "indication of how strong the
momentum is for Reels," said Carolyn Everson, vice president of
global business group at Facebook, in an interview. Everson
declined to share usage metrics for Reels.
    As with other content on Reels, ads can be up to 30 seconds
long and users can choose to skip the ads, Facebook said.
    Facebook also announced Thursday it will let advertisers
select categories of video content they want to place ads on,
such as videos about children and parenting, animals and pets or
fitness and workouts.
    The effort is Facebook's biggest move yet to let brands
advertise alongside content subjects. Advertisers typically use
Facebook to target certain users by their interests.
    "This is a big deal for marketers," Everson said.
    Facebook added it will begin testing sticker ads for
Facebook Stories in the coming weeks. Brands can create stickers
that creators will place in their Stories, and influencers will
earn a cut of any sales made through the sticker ads.
    The feature is part of Facebook's push to court content
creators who are increasingly making money directly from fans
and followers through platforms such as audio chat app Clubhouse
and membership site Patreon.

 (Reporting by Sheila Dang; Editing by Sam Holmes and Karishma
 ((Sheila.Dang@thomsonreuters.com; +1 646-983-0894))
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