Economy

Facebook videos could soon house a lot more ads

Facebook videos could soon house a lot more ads

Professional publishers are set to receive 55% of the revenue from each mid-roll ad sale, matching the cut offered by YouTube, Recode reported.

The publication attributes this possibility to the difference in profit generation between YouTube and Facebook, where the latter makes more ad money than the former because it gets to keep all of the profit made.

Facebook has been allowing publishers to create videos that are sponsored by advertisers, but has been restricted to a just a few well known publishers like Buzzfeed.

Last year Facebook, which has been against pre-roll ads, had winked at inserting mid-roll ads into non-live videos.

Facebook is doing what many publishers had hoped it would one day do, according to Recode: opening up another key revenue stream for video producers. Publishers can also create branded content, as long as the brand is tagged with the Facebook post.

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Companies and content creators often criticized Facebook for its extremely limited revenue model for videos, which only feature ads under certain conditions. Sources say that decision came after BuzzFeed executives complained to Facebook executives that they weren't making enough money from Facebook video.

"And next year, we're going to start thinking about how that type of monetization opportunity could potentially be brought to regular videos as well". Facebook, on the other hand, has done an excellent job setting itself up for success, and will soon begin testing a new way of making money.

Facebook is reportedly incentivizing publishers to make those initial 20 seconds worth viewers' while. That's been a source of controversy in the media business, especially since Facebook automatically plays videos when they show up in users' feeds.

On top of that, even if the video has a total length of 90 seconds, a 20-second ad can very well be inserted.