Facebook has launched a pilot program to share revenue from video ads linked to video content with the content creators. This marks the first time the company has distributed revenue to creators in the video space. The move aims to encourage media outlets and popular video creators to post compelling content, positioning Facebook to challenge YouTube's dominance in this arena.
According to Ad Age, not all videos in the News Feed are included. Instead, a new page called "Suggested Videos" has been created. Clicking a video in the News Feed opens the Suggested Video page in a new layer. When the video plays, a list of algorithmically generated "recommended videos" appears below. Advertisements are inserted among these. When an ad is viewed, ad revenue is shared with the creators of all video content watched on that Suggested Video page. Revenue is split with Facebook receiving 45% and creators receiving 55%, distributed based on viewing time.
Facebook is focusing heavily on video, such as enabling autoplay for videos in the News Feed, and the number of posts has surged 360% year-over-year. Participants in this pilot program include the NBA (National Basketball Association), Fox Sports, and the comedy site Funny or Die. Following the trial, the feature will first launch on iOS, with an Android rollout planned later.
Source: Ad Age
Facebook Is Testing Ad-Supported Videos, Will Share Revenue With Creators
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