Facebook Inserting Mid-Roll Ads Format For More Revenue Generation

Facebook Video Ad Revenue generation

Facebook has planned to devise the ad break format and introduce a mid-roll ad format in order to muster more lucrative business out of the video ads. Monetizing video ads is a significant step towards giving control to the publishers to make money from the branded video content. Earlier, the ads were played in the beginning of the video, but now this innovative implication enables the publishers to insert ads in the middle for the video after the user has seen the video clip for 20 seconds. It means that Facebook ads will appear only in the mid of those ads that run for 90 seconds. Basically, Facebook wants is to create more advertising opportunities for the publishers. In this deal, the revenues would be divided in the ratio of 55% and 45% to the publishers and Facebook itself respectively.

facebook-canvas-ad

Pre-roll ads are forbidden

In order to retain the attention of the users to the videos, these ads break will appear as mini commercial ads. The CEO Mark Zukerberg has forbidden pre-roll ads which are broadcasted before the video clip starts. This change is for the encouragement of the Facebook ad publishers. In fact, Facebook has planned to provide platform to all types of videos throughout the network, especially in the Newsfeed.

Facebook Few Video feature

Video-view to be given more priority

Facebook defines the video-view as the time a user spends on watching the video clip for minimum three seconds. But, now the Facebook plans on focusing more on the time spent on these ads and not the number of ads. The live video ads is very different as publishers have to be live for four minutes before they can view an ad break and all the mini ads will last for 20 seconds. Facebook also announced a video app for set-top boxes.

The arrival of Original shows from publishers

A new video tab called Watch will provide a platform for the original shows to be showcased by the publishers and creators. As this mega trend aims at calculating the time spend on watching a video rather than the number of videos watched, so this new arrival has the potential to uplift the user time spent on watching video. As per Facebook standards, the new Watch tab will allow the publishers, for example Quartz, available on the platform to insert their ads in between the shows. In this way, in-stream ads will sprout more profits.

Video Ad Revenue Generation

The concept of introducing the mid-roll ads is beneficial for the publishers who were earlier not able to derive much profit out of video ads despite investing a good amount of resources on them. This will motivate the ad publishers to create quality branded content and thus, earn more revenue. The increase in the video consumption on Facebook is what drives people to watch more Facebook advertisements. Moreover, video ads are expensive which simply means more revenue generation for Facebook. In the pursuit of making more money, Facebook is persuading advertisers to spend their television budgets on Facebook so that video ad revenue gets priority. This is a very big step that Facbook has taken, and now let’s see what the repercussions hold on for these Facebook ads.

Leave a Reply

Your email address will not be published. Required fields are marked *