Facebook’s New Video Ad Feature Could Worry Google

These days Facebook is testing its new video advertising feature, which can be big challenge for the dominance of YouTube in the market of digital video advertising. On this project Facebook is working with selected media companies and video creators such as; Funny or Die and NBA.

It is expected that soon Facebook users will see a new section in their newsfeed known as "Suggested Videos”. And whenever users will click on the video, so pop-up will appear with recommended videos and scrolling stream, however; all the recommended videos will be the outcome of previous videos, which you may will watch in your newsfeed.

According to Facebook officials, “We are planning to split our revenue from video advertising as; 45 per cent will go to our social network and remaining 55 per will cent will go with video creator” (owner of content advertisement). As per the statement of a Facebook spokesperson, “Currently, we are running the test process for new video advertising feature, as it will help the users to discover more videos with similar choices. We are running a monetization test in suggested videos where we will show video advertisement in feed-style and share revenue with some of the media companies and video creators”. Currently, project is being tested for the people who are suing an iPhone in America.

Big challenge for Google: 

Currently Google’s YouTube is dominating on the digital video advertising market, but in future, Facebook’s new video advertising feature could be big challenge for Google because this social networking site has great number of followers. According to Facebook strategy, users will see only one advertisement for three videos. And in that particular case, 55 per cent revenue will split between three video creators and it will depend that for how much time you have watched their videos. According to tech experts, Facebook will focus on the news-driven shares as core strength, however; YouTube has strong search engine and channel based strategy.

However; its well known fact that YouTube has helped many stars to get dedicated number of followers and to watch latest clips you can easily switch to YouTube stars' page, but Facebook doesn’t have these kinds of pages.

Game changing payout structure: 

According to Richard Broughton, Research director of Ampere Analysis, “It’s true that Facbook’s pay-out structure is bit complex, but it’s good enough to attract content partners”. The more he added that Facebook is offering incentive for the content creators, if they will put their content on this social networking site and because of this content creators will create more content for this platform. It is expected that in 2015, video views will exceed two trillion, which is two-thirds of YouTube’s total views for same period, as per Ampere Analysis, which emphasis the social media advertisements.

From past two years Facebook is making big moves and now Facebook is testing on the video experience. Now Facebook is planning to show more content including auto-playing videos in newsfeed as it has one billion daily views in September 2014 and four billion in April 2015.