Facebook to start testing ads on Instagram Reels feature

Facebook announced on Thursday it would start testing ads on its Instagram Reels in India, Brazil, Germany and Australia.

With the move, the tech giant wants to make money from the short-form video feature, similar to rival TikTok which is gaining considerable traction among users.

The company is also seeking to capitalize on its popularity in India, a fast-growing social media market, while rival TikTok had been banned from that country since 2020.

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 with Reuters.

Facebook has said it plans to test other features in India, such as letting content creators share Reels videos on their Facebook accounts.

It also announced Thursday that it will let advertisers select the categories of video content that they want to place ads on, its 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 added.