Facebook to Share ad Revenue with Video Creators

The giant social network has started to be designed in such a way to attract more ads and more polished content. It seems that now, Facebook is ready to target the smartphone territory. People who use Facebook are watching more than four billion times a day videos on the social network platform.

With this high number, there is no wonder that the company decided to make some serious money from the vast audience. The social network declared that is would begin sharing ad revenue with video creators. This move is aiming to attract more ads and polished content. 

“We’re running a new suggested videos test, which helps people discover more videos similar to the ones they enjoy. Within suggested videos, we are running a monetisation test where we will show feed-style video ads and share revenue with a group of media companies and video creators,” a Facebook spokesperson said. 

If this move will go well for Facebook, the effort will be transformed into a serious threat to Google’s YouTube online video. Until now, the giant social network has entered video ads into uses’ news feed, but now they introduced a new feature, named Suggested Videos and it will include ads between professionally produced content from huge media companies, just like TV advertisements. Facebook’s revenue-sharing model is more like Youtube’s meaning that the company will keep approximately 45% of the revenue. 

To be mentioned that video producers on Facebook will be forced to split their share more ways, meaning that they will get a smaller cut. From this point of view, YouTube is more convenient for video producers. This initiative is aimed only for smartphones, which represent a source of almost 75% of videos views on Facebook.

YouTube has approximately the same numbers of videos, but only 50% of its video views come from phones. “There are use cases when someone wants to go into a video consumption experience,” declared Dan Rose, Facebook’s vice president of partnerships. “Scrolling through your news feed is not the most efficient way of doing that,” he also added.

“Facebook could now be very serious competition for YouTube,” declared Jan Rezab, chief executive and co-found of Socialbakers. “If I were Google, I would watch out,” he concluded. 

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