With the increasing shift towards visual content, Facebook has been locking horns with YouTube which has been thriving on a market worth $200-$400 billion. The world’s largest social network wants to gain the confidence of content creators and advertisers that Facebook can not only give reach but ROI too.
According to Facebook, on average, more than 50% of people who come back to Facebook every day in the US watch at least one video daily and 76% of people in the US who use Facebook say they tend to discover the videos they watch on Facebook. Additionally, the amount of video globally from people and brands in News Feed has increased 3.6x year-over-year.
But a recent report revealed by BI Intelligence, Facebook might be jumping the guns for its humongous video view counts but it is an amateur heavy or user-generated video platform. Facebook is aware of it and it is determined to change it. According to a latest story by The Information, in a significant expansion of its video strategy, Facebook is in discussions with several media firms, including Vice, The Onion and Vox Media, to produce short-form videos for the social network, according to people involved in the project.
The latest video push by Facebook is aimed at injecting higher-quality videos into users’ News Feeds so Facebook can make more money from video ads. At the same time Facebook is also convincing advertisers to sponsor the native videos, creating so-called “branded content.” The videos are expected to be rolled out later this year.
Facebook already has deals like this in place with the NFL and Verizon. During the live event, the league started posting short exciting videos from the game, as well as NFL news and fantasy football advice. The clips immediately followed ads from Verizon Wireless, which paid to promote them within NFL fans’ Facebook news feeds. Facebook and the NFL shared the ad revenue, though the specific financial terms weren’t available.
Facebook now plans to bring in other partners within the same business model. The company reportedly plans to discuss more details regarding “Anthology” during the “NewFronts” conference in April – a showcase of upcoming video programming for advertisers held in New York.
In November 2014, the number of videos uploaded to Facebook overtook YouTube videos on Facebook for the first time. With Anthology plan Facebook has given a choice to brands and creative content creators to look beyond YouTube. Specially at a time when YouTube’s recent policy changes for large content creators has made them worry and possibly look for other video sharing platforms.
If reports are to be believed Facebook won’t be churning out before the start of 2016 but it has given reasons for the grandfather of the video industry YouTube to be worried about.