Facebook is rolling out three new features aimed at monetizing videos. Content creators can look at this announcement as a sign of good times ahead.
Videos on Facebook get a ton of consumer attention with more than one hundred million hours of viewership per day. The news feed, where these videos are displayed, is a very valuable place to be. Advertisers will be happy to see that Facebook is ramping up its advertising efforts in this area.
The New Features Are:
Audience Network may not be a household name, but it's a service that Facebook has been developing since 2014. Third-party publishers use it to activate Facebook's advertising system in videos elsewhere on the internet.
In other words, you can use Facebook to make money with video advertising, regardless of where those videos are hosted. Audience Network was only available to limited partners in its first two years. Now it's being opened to all eligible publishers.
If you get a significant amount of video viewership on your website, you should consider joining the Audience Network program. This could become a major revenue stream for some brands.
In Facebook's announcement they cite Univision, who saw 50% better CPMs with Audience Network ads than with other monetization partners. You can enjoy similar results now that it's available to you.
Great download here by 451 Research explaining the audience network: I Want It
Facebook is distributing vast amounts of video content. How can they monetize this system? They already earn some money through their sidebar ads, but videos represent a larger opportunity
Think about the way YouTube makes money on users' videos. They run ads before videos some of the time. The ad revenue is split between themselves and channel owners. That's a pretty good deal and it has created huge revenues for everybody involved.
Facebook is trying to emulate YouTube's success with in-video advertising. These ads show up in the exact same screen location as the videos do, which gives them an advantage over sidebar ads. In other words, video ads happen where the action is.
On-demand video advertising is currently only accessible to a limited number of top-tier partners. It is likely to expand to more pages in the future.
This is the most exciting new idea to come from Facebook's announcement. Facebook will give live streamers the option to run a 15 second ad once they surpass 300 concurrent viewers. After you run an ad, you have to wait at least five minutes before you run the next one.
The big question here is how audiences will react to advertisements during live streams. If brands can follow in the footsteps of broadcast television, running ads every 7-10 minutes, they could generate a lot of money.
On the other hand, audiences may not tolerate such frequent advertising. Many live streams up to this point have been ad-free. It will take some experimentation for brands to find the best way to approach live stream ad scheduling.
It's impossible to say which of these features will perform the best. You have to try them out yourself. It'll be a long time before we have definitive statistics about ad breaks and Audience Network.
Play to your strengths. If you are great at live streaming, you can start by focusing on live stream ads. If on-demand video is your focus, use Audience Network and wait for the public release of ad breaks for your Facebook videos. Either way, be bold and try something new.
Facebook is rolling out many features aimed at earning you more money. In the end, they can only provide the infrastructure. You have to create the content that makes fans go crazy.