If you stay up-to-date with tech news, then you may have heard about Facebook’s new video ad revenue plan.  For people who create their own original content and upload their work to Facebook, this sounds like a new way to make money, right??

Unfortunately, it isn’t…at least not yet.

Facebook  made the announcement this week that they will offer video creators a portion of the proceeds made in advertising revenue. Starting this fall, larger content creators like Fox Sports and NBA will retain 55% of the monies made through ads that run alongside their videos. The other 45% will stay with Facebook.

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Facebook will generate ad revenue via their latest feature called Suggested Videos. Users will access this new type of “news feed” after clicking on a video in their timeline. If the video is about Michael Jordan, the user will then see the Suggested Videos feed to see that video and others pertaining to Michael Jordan.

In the stream of videos, ads will appear. If there is one ad in a stream of four videos, Facebook will calculate the revenue earned and divide 55% among all four content creators.

If you’re thinking that Facebook is gunning for YouTube, you’re right. YouTube has dominated the digital video market for years. Facebook is now trying to attract those same content creators. The only downside to their plan, at this point, is that the revenue sharing will not be offered to just anyone. It’s obvious that video content is where companies are spending money at. If Facebook is serious about competing with YouTube, sooner than later, they will need to give ALL users an opportunity to make money off of ads.

Is this a good look for Facebook?

 

One Response

  1. Dan

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