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Facebook to Challenge YouTube; Will Start Mid-Roll Video Ads And Share The Revenue With Publishers

The total revenue generated from each video will be split between Facebook and the publisher, with the publisher getting 55 percent of total sales.

News18.com

Updated:January 10, 2017, 3:14 PM IST
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Facebook to Challenge YouTube; Will Start Mid-Roll Video Ads And Share The Revenue With Publishers
Facebook CEO Mark Zuckerberg (Image: Reuters)
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Facebook will soon start testing a new ad format for the videos which are present on the social media platform. The ‘mid-roll’ format will allow the video publishers to insert ads in their videos and earn revenue from it.

The total revenue generated from each video will be split between Facebook and the publisher, with the publisher getting 55 percent of total sales.

This move places Facebook as a direct competitor to YouTube, the leading online video streaming platform.

Part of the reason of YouTube’s success was the revenue sharing model that it had developed since the very beginning which allowed the content publishers to earn revenue from the website.

The pushing factor worked wonders for the Google owned platform as the traction on the website skyrocketed because of the quality and quantity of the content uploaded on it.

Also read: New Facebook Messenger Has Snapchat-like Camera Features

Having a much larger user base, Facebook eyes the exact same results by implementing the revenue sharing model.

With the same revenue percentage offered to publishers on both the platforms, Facebook might take the lead in this segment owing to its larger user base.

Facebook has been actively promoting videos since quite a while now. It started with the auto-play option for its users which automatically began to play any video in view present on the news feed.

Nicola Mendelsohn, Vice President, Facebook Operations had also mentioned earlier in a press conference that Facebook might turn to ‘all video’ in the next 5 years.

The new feature will come out with a difference though. For the first time, Facebook has laid stress on the quality of the video content that the viewers are watching.

In lieu of that, the video-ads will be shown 20 seconds into the video. This will push the publishers towards uploading quality content which keep the user’s attention.

Also, these ads can only appear in videos which go on for more than 90 seconds.

It is a matter of debate how this move will affect YouTube and its viewership or if it is still able to maintain its position as the leading online video platform.

Also read: Snapchat vs Facebook: 6 Ways Facebook Tried to Kill Snapchat

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