Facebook to Start Showing Ads Inside Videos

Maxine SotoJan 11, 2017

Facebook did not immediately respond to a request for comment. This strategy stands in stark contrast to pre-roll ads, something which YouTube allows but Facebook does not.

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.

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Facebook Inc (NASDAQ:FB) will start testing out mid-roll ads through which the company will be giving a chance to publishers to insert ads in the videos. In addition to Instant Articles, Facebook's year-and-a-half-old Suggested Videos program shares ad revenue with publishers whose videos are watched in the same recommended video carousel as a video ad, so long as the ad is watched too. The social giant's metrics for video consider a view any footage that plays for 3 seconds or more.

The report notes that Facebook will sell the ads, and 55 percent of the revenue will go to publishers. Currently, the test only involves select publishers and content creators. Last year, CEO Mark Zuckerberg said people watch 100 million hours of video on Facebook each day; and Sheryl Sandberg, Facebook's COO, later noted that 500 million people watch video on Facebook daily.

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The move to ad breaks comes as little surprise to publishers. That stance has also discouraged some Facebook publishers, like sports leagues, from putting valuable content on the network.

"Advertisers are super keen on video advertising", said Eleni Marouli, at analyst company IHS Markit. Over the next few months, we're going to be expanding the ad break within live videos.

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"If Facebook wants those TV ad dollars, they have to invest more in video". This time limit is set for videos that will at least run for 90 seconds and not less than that.

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