On Tuesday, Meta Platforms Inc (previously Facebook) announced new types of ads. The company wants new revenue streams for short videos and business messaging products. It says that the two products are important for growth this year.
Meta, the parent company of Facebook and Instagram, says that it will start testing a new video ad that starts playing after users watch a Reel. Reels are short videos from users on Instagram that are similar to videos on Tik Tok. The new video ad will be skippable.
There will also be an ad at the bottom of Reels that users can scroll left or right through. The ads will show a maximum of ten images.
Executives from Meta say that the new ad formats might help people who create Reels earn more money. The creators could place ads at the bottom of their videos.
Nada Stirrat, vice president of Meta’s global business group for the Americas says that the company’s goal is to “provide tools and monetization opportunities” for creators.
Another type of ad will start a direct chat between a business and a potential customer. Meta can now use AI to target new customers.
Meta claims that their research using 400,000 advertisers shows that AI helped make advertisements more effective and increased sales.
Additionally, Meta will add advertising to the ‘Explore’ section on Instagram, so users will see advertisements when searching the platform.
VOCABULARY
- Announce – share information openly; to tell the public; to make a statement; to report
- Ad (advertisement) – marketing or sales material; a notice or sign to promote something
- Revenue – income; money that comes in; money earned; earnings
- Revenue stream – a source of money; the money earned for a particular activity; different sources a business earns money from (Sony has many revenue streams: Playstation, movies, electronics, and music)
- Growth – increase in earnings or in value; earn more money
- Parent company – A company that owns or controls other companies
- Skippable – you can skip it; it’s possible to go past
- Scroll – to move text or images on a screen (up, down, left or right) so you can see more
- Executive – an important person at a company; someone in a high management position; director; head;
- Format – the arrangement; general plan of organization; a method of organizing data; style
- Earn – to get something (usually money) because you worked, sold something, or helped someone; receive
- Place – to put;
- Vice president – a person who is under the president; the second most important person
- Tool – a thing used to help do a job; a device with a specific function; instrument; equipment
- Monetization – the act of changing something into money; to convert something into money; the activity of earning money
- Opportunity – chance; occasion; possibility; available moment
- Potential – possible; maybe; likely; could become
- AI (artificial intelligence) – human intelligence in a machine. See more here.
- Target – to aim at; direct attention towards; go after; focus on; pick out
- Claim – a statement; to say something, usually without proof or evidence; allegation; suggestion
- Platform – an online business that provides a service or connects people and businesses
Original story from Reuters below:
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