Facebook to Compete YouTube by Sharing Ad Revenue with Video Creators

News - (on July 02, 2015 01:09 AM)

Video Giant to Face Serious Competition from Social Media Gene

Facebook is offering video creators 55% of the ads revenue. It is the first time Social Media giant to offer revenue on videos to Battle YouTube!

So far, there was no one to give serious competition to world’s number one video streaming website. We’ve seen some partial competitions where YouTube have to face little suffer you to bans on controversial issue. For example, in some countries, when YouTube get blocked due to controversial videos uploaded against religion, some small video streaming partners covered the gap. However, overall, YouTube maintained the position as a top video site with no one even near to compete.

What now, a social media giant, Facebook has decided to beat YouTube in video stream as well by introducing a Suggested Videos feed that curates a sequence of clips, interspersed with adverts. Yes, Facebook is not offering ads revenue to video creators on every video, the uploader of the video will only get its 55% of the video from Suggested Videos; the remaining 45% will be placed in Facebook’s pocket.

Start looks pretty nice, as according to Facebook, its users are clocking up four billion video views daily. And it is “aggressively moving into the video space," said Eleni Marouli, advertising analyst at IHS consultancy.

"In December 2014, Facebook surpassed YouTube in views for the first time, and we predict YouTube will lose share from next year onwards."

Although YouTube has been offering 55% of ads earning to video creator far a long time before Facebook to offer, what’s the difference then? YouTube give content creator the revenue from ads displayed before their videos, where Facebook will share the revenue on time basis, and split the 55% it is offering between several creators.

“A lot of [our partners] have said this will be a big motivation to start publishing a lot more video content to Facebook,” Dan Rose, Facebook’s VP of partnerships “That’s exactly what we’re hoping for.”

Facebook made $3.3bn (£2.1bn) in the first quarter of 2015 through ad revenue, and 73% of it was from mobile ads, which shows it was “very adaptable," said Ms Marouli.

"In 2012, they had zero mobile-ad revenue. In two years, they've raised that to over 60% of their ad income.

"Based on our forecasts, by 2018 Facebook will have 25% of online video ad revenue in Europe, and more in the US," said Ms Marouli.

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