Chris Hyde/Getty Images for boohoo
- Facebook will now allow creators to insert ads into 60-second videos and live-stream events.
- Facebook's director of app monetization said the company is focusing on short-form videos.
- Users must have at least 600,000 total minutes of viewed content within 60 days to qualify.
- See more stories on Insider's business page.
Facebook announced plans to help creators further monetize their content on Thursday.
The product update allows creators to earn money off minute-long videos and live stream events, as well as opening up ad opportunities for more users.
Facebook's update could be an attempt to compete with TikTok on short form videos. Yoav Arnstein, Facebook's director of app monetization, said the company is looking to further empower creators that generate short-form and live videos.
The social-media company's new ad program gives Facebook creators an easier way to generate money off their videos and makes the app more competitive with the revenue creators can generate on TikTok.
On TikTok, influencers can monetize their views through the app's Creator's Fund. Members of the fund must have at least 10,000 followers and views within 30 days of applying. Through the program, influencers generate about 2-4 cents per 1,000 views, according to the media site Tubefilter. Most TikTokers with enough views or followers to generate paying opportunities make a majority of their money off brand deals, which generate between $200 to $20,000, Tubefilter reports.
Facebook's ad campaigns generate an average of $8.75 per 1,000 views, according to the Social Media Examiner. Tubefilter found Facebook creator revenue fluctuated in 2020, with some influencers generating millions of dollars off the site, while others with millions of views received little to no pay out.
Previously, Facebook's monetization program catered to videos that had to be at least three minutes long and was invite only for live in-stream ads. The latest update will expand the number of users who will be able to make money off their videos on Facebook.
To qualify, a Facebook user's page must have at least 10,000 followers and 600,000 overall minutes worth of views within the past two months, as well as at least 5 uploaded or live video streams. Creators can check their eligibility for the expanded program on Facebook's Creator Studio page.
Arnstein said the update is catered toward artists who have been heavily impacted by the pandemic. The new policy will help performers who were forced to go from live touring events to live-streaming on Facebook.
"We want them to have the tools and support they need to earn money and thrive, whether creating and sharing content is a primary business, one of many revenue streams, or a lifeline that's kept their business afloat during the pandemic," Arnstein said in the press release.
The ads will range from 30 to 45 seconds, depending on the length of the video.
Creators will also be able to access more fan support through Facebook's invite-only Stars program, which allows viewers to send gifts and creators to further monetize viewer support.
Facebook said it is testing sticker ads in its stories feature, which would allow for creators to generate more money off them.
The app is further developing its paid online-events feature that was launched in August and plans to continue to avoid collecting any percentage of revenue off paid events until at least August 2021.