Altering Approaches to Brand Strategies through Reels, Threads, and Valuation Principles
Meta, the parent company of Facebook and Instagram, is making waves in the advertising world with the introduction of Reels Trending Ads and the expansion of the Threads advertising platform.
Reels Trending Ads, an AI-supported ad placement, is appearing alongside trendy Reels content on both Facebook and Instagram. Initial tests by Meta show that these ads generate a 20% higher organic attention than traditional campaigns, indicating higher effectiveness for advertisers on Meta platforms. The ads are being tested by various companies, and according to Meta, they deliver better performance than TikTok Pulse.
Brands no longer need to operate their own Threads profile to run ads; existing Instagram or Facebook posts can be extended to Threads via the Ads Manager. Threads is being expanded as an advertising platform with new formats like 4:5 renderings for single-image and video ads, as well as carousel ads.
Meta is also testing Advantage+ catalog ads and app ads campaigns on the Threads platform.
An integrated strategy using existing content from Instagram and Facebook for Threads and Reels Trending Ads is recommended for reach and cultural relevance. However, questions remain about measurability in the new formats.
The AI-controlled campaigns require increased budget control and campaign planning. Transparency of attribution could be a challenge with these campaigns. Brands are advised to test new formats early, adapt creative content, and develop clear definitions of "valuable target groups".
Not every placement next to trendy content may be suitable for every brand due to brand safety concerns. Advertisers can position Reels Trending Ads in general trend content or specific categories like "Animals & Pets", "Beauty & Fashion", "Cars", or "Sports".
New formats offer reduced effort in producing advertising materials and simplify cross-platform use. Higher performance in these new formats may lead to increased costs.
Value Rules, a feature that allows advertisers to instruct Meta's AI to prioritize specific target groups in awareness, engagement, sales, or app campaigns, promise more efficient budget use and higher conversion rates. According to Meta, campaigns with Value Rules result in twice as many high-quality conversions compared to standard campaigns.
Meta is lifting the possibility of detailed targeting exclusion for AI efficiency, which could lead to broader reach but potentially less precise targeting. The new developments aim to provide advertisers with more opportunities to engage with their audience and achieve their marketing goals.
