Facebook Catches Video Enthusiasts And Advertisers With Revenue Share

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Taking advantage of its massive video sharing and creative content capabilities, Facebook is now offering video makers and advertising executives a significant share of its ad revenue.

While still in its testing phase on some users’ iPhones, the video ads appear in the Suggested Videos list without sound while users scroll down through the News Feed. Advertisers pay a 45% share of the revenue only when the ad has been viewed for ten seconds or more.

Clicking on a video in News Feed props up additional video suggestions below it with the same topic or from the same channel. These videos play if the user scrolls through them. Depending on how long every video is played, the 55% revenue is split between the owners of the videos.

Previously, Facebook charged advertisers as soon as their video ads came into view. Marketers felt that the ads should be effectively seen by consumers instead of being ignored as users scroll past them in the News Feed. While this package is still available to advertisers, Facebook is offering this new approach for those who want added value for their products and services while paying only for ads actively watched by users.

A spokeswoman for Facebook told Wall Street Journal,

?We strongly believe in giving marketers flexibility over how they buy video ads, and we listened to feedback which is why we?re offering the new cost-per-view option,? the spokeswoman said. ?We don?t believe it?s the best option in terms of capturing the best value and brand objectives marketers care about, but we want to give them control and choice over how they buy.?

With its users collectively watching over 4 billion views a day, Facebook’s ad offering is a definite threat to Youtube’s standing in the market. Youtube offers 55% of revenue to advertisers, which is similar to Facebook’s offer. However, in Facebook, videos that are being shared through the personal and social intricacies of social media can now carry relevant ads with them and the user experience is more likely to generate better customer leads this way.

Facebook ?is observed to slowly gain ground in its competitors territories as it introduced a way to copy links without leaving the main page which may be the foundation for a search engine feature that may one day rival Google, as well as the Instant Articles feature for aspiring news writers.

This option is available through Facebook’s Power Editor and API buying tools.

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