Overlay ads on Reels: Will marketers go for it?
Meta is doubling down on its Reels with the introduction of overlay ads. This new format, which is gradually being rolled out globally by the tech giant and features prominent call-to-action buttons, marks a significant expansion of advertising opportunities on the short-form video platform. Industry says that the move is a clear indication of Meta's focus on monetizing Reels, which has seen rapid growth in recent months. Reels now generates a combined 200 billion views daily across Facebook and Instagram “Facebook overlay and post-loop ads on Reels can be banners on Reels videos, or video ads in between Reels videos. Brand safety tools, including inventory filter, block lists, publisher lists and delivery reports are available. Facebook Reels full-screen ads appear in between reels. As with any reels content on Facebook, people can comment, like, view, save, share and skip them,” Meta said. By offering advertisers a more direct path to consumers through overlay ads, experts feel that Meta is aiming to increase ad engagement and drive conversions. The inclusion of a CTA button is a direct response to marketer demands for more interactive ad formats. However, they also point out that the success of this new format will hinge on the tech giant's ability to balance advertiser needs with user experience. If executed correctly, overlay ads could become a lucrative revenue stream for the company. But if they disrupt the user experience, it could potentially harm the platform's overall appeal. Digital agency heads are in discussions with their clients, to gauge how users respond to the new ad format. If viewers find the ads intrusive or distracting, it could negatively impact ad performance and overall user satisfaction. On the other hand, if the ads are well-integrated and deliver value to users, they could become a highly effective tool for advertisers. “The layout that Meta has chosen for this is pretty clean, it is not too intrusive except for some aspects. But they can overcome it by managing it well contextually,” said Shradha Agarwal, Co-founder & CEO Grapes. She added that it would be a lot more interesting to see how the CTRs increase with the right contextual strategy. “We're looking forward to trying that for a couple of our clients specifically with FMCG, education, fashion and lifestyle. Imagine if I get a discount percentage on my own reel, that could be really fun,” Agarwal mentioned. Rahul Vengalil, CEO & Co-founder of TGHTR says that it's a great way to add relevancy. However, he is also sceptical about engagement, considering on Reels, content is the priority for the users. “When you twist or change the consumer behaviour, then that's going to be challenging. Then there is the challenge of visibility of the ad over a video. Unless we finally see the rollout,” he added. Vengalil also pointed out that a brand’s overlay over the brand’s video would actually work as a format. Experts believe that this could significantly reduce friction in consumer-brand interactions, creating a more seamless experience. Like Abhinay Bhasin, Senior Vice President- Product & Technology at dentsu says, “Overlay ads will reduce yet another point of friction between consumers connecting with brands for fulfilment or the action prompted on the messaging. Ultimately it will boil down to how relevant the message served is that will get consumers and drive up interaction. It will serve as a good opportunity for direct brand - audience connects.” Bhasin opines that consumer reactions will serve as a testament to whether the feature is relevant or not. “Ultimately consumers trade off intrusiveness for convenience and it is always about finding the right balance between the two,” he added. However, an ad format only works when brands are ready to invest in it. Basically, it is all in the hands of marketers. Of late, marketers across sectors have been under tremendous pressure from top management to project immediate ROI. The combination of a massive user base of Reels and CTA buttons embedded seems pretty lucrative to them, considering it would lead to faster conversions. “Overlaying any kind of call-to-action button or any kind of call-to-action process on top of an existing inventory or top of an existing format is always welcomed from a marketing person because it makes that particular ad unit or that particular ad inventory work that much harder for the marketing campaign,” said Prasun Kumar, Business Head at Magicbricks. Marketers shared with e4m that at this point, marketing is completely ROI driven. And with inventories and ad options that allow them to measure the effectiveness of messaging and also get them responses based on those would be the most sought-after inventory for them in their media plan. “Reels has been one of the most engaging ad units or content units that exists today across any platform worldwide,” Kumar added, noting that this move does make it likely for marketers to invest in advertising on Reels. Rajiv Dubey, Head of Media at Dabur also highlighted how Reels on Facebook and Instagram generate a staggering 200 billion views daily. “These ads, featuring prominent call-to-action prompts and the option to showcase single images or carousel promotions, are designed to captivate and engage viewers effectively,” he mentioned. By allowing advertisers to expand their ads on the second play of a Reel or position them between clips as direct promotions, Dubey explained that Reels overlay ads would ensure that promotional content is seamlessly integrated into the user experience. Speaking of the avenues that get opened up for brands he added, “This strategic placement not only maximises visibility but also leverages the compelling nature of Reels to drive higher engagement and interaction. These ads would offer a powerful tool for advertisers to reach a captive and highly engaged audience.” For more updates, be socially connected with us on
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Tags : Marketing Reels Meta Digital Marketing