The rapid growth of social video in 2016 saw it become the most valuable format for brands, publishers and rights holders to drive engagement, reach and tune in – 2017 will see this content develop into a key revenue stream for publishers.
Facebook is testing the introduction of ‘mid-roll’ adverts with its video content, inserting an advertiser’s clip in the middle of a video instead of up front (pre-roll) or at the end (post-roll). This much-needed step towards monetizing social video will launch soon according to a report from Recode, with the ad revenue split 55:45 in favor of publishers.
Currently, rights holders and publishers have limited options to generate significant income from video shared to Facebook. The addition of branded content in 2016 was welcomed by many after the challenges of its “Suggested Videos” program, but scalable options for direct monetization have not been available until now.
Facebook mid-roll ads will give video publishers the chance to insert adverts into their videos after people have watched them for at least 20 seconds, presenting a new opportunity for broadcasters, rights holders and publishers to monetize their social video content.
Facebook currently serves over 100 million hours of video each day and is actively looking at ways to increase video discovery and engagement within the platform. Last year it was reported Facebook was testing similar mid-roll ads with Facebook Live.
The upcoming changes will favor brands and publishers that can quickly deliver longer, more engaging video content – it will also enhance the value of live programming which drives higher engagement per user and long watch times. As a result, the speed of social video production and distribution will become increasingly important as publishers look to take advantage of these new advertising revenue streams.
Grabyo is the video platform built for live, social and mobile. The cloud-based platform removes the traditional complexities of professional video production and distribution, empowering rights owners to be first to market with content and generate complementary new revenue streams. Grabyo is proven at scale with the largest rights holders and live TV broadcasters globally including Universal Music, La Liga, The English Premier League and Wimbledon.
As Facebook continue to move towards the commercialization of video on its platform, now is the perfect time to try Grabyo.