Facebook tests a new way to show video - and make money from it

Called Suggested Videos, a new feed will appear first on iOS, showing both partner content and ads

A screenshot of Facebook's Suggested Videos feature on iOS.
A screenshot of Facebook's Suggested Videos feature on iOS.

Facebook is preparing a new way to show videos on the social network and opening the door to a new source of advertising revenue at the same time.

The new feature, called Suggested Videos, will roll out first on iOS in the coming weeks and probably will come to other platforms like Android and the Web in the next few months.

It works like this: When users click on a video in their News Feed, a new area pops up with related videos from Facebook partners that users can also watch. Some of those videos will be advertisements, and when a user watches one of them, Facebook will share the advertising dollars with the other partners supplying the video.

If a user taps on a video of a basketball game recorded by a friend, for instance, the Suggested Videos feed might contain videos from the NBA along with advertisements. If the user watches an ad, Facebook will split the revenue from that advertisement with the NBA.

The rollout, which Facebook is calling a test, comes as the social network moves to make video a larger component of its site in an effort to compete against YouTube and attract video advertisers. Facebook CEO Mark Zuckerberg has said that, several years from now, Facebook will be mostly video.

In addition to the NBA, Fox Sports, Funny or Die and Tastemade, a food and travel video network, are among the initial set of a few dozen video content partners, a Facebook spokeswoman said.

The rollout of Suggested Videos will mark the first time Facebook shares ad revenue with video partners. This could eventually draw more video creators to Facebook and away from YouTube, and make the social network a more popular destination for video. But Facebook has a lot of catching up to do against YouTube, which has shared ad revenue with partners for some time now.

Facebook might argue it has the algorithmic know-how to show just the right videos to its 1.44 billion users. This week, the company said it would be taking into account more user actions in deciding which sorts of videos to show people, like when users make the video full screen or enable high definition.

In 2013, Facebook began making videos shared natively on the site play automatically, whether they're posted by end users or advertisers. This past April, the company reported it was generating four billion daily "video views", which it defines as a video watched for three seconds or more.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

The competitive advantage Australian retailers have over Amazon

With all of the hype around Amazon, many online retailers have been trying to understand how they can compete with the American retail giant.

Joel Milligan

Performance manager, Columbus Agency

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

Fear not: It's only a robot

Every time I pass through the automated border controls at the Sydney airport I walk away with a feeling of exasperation on the one hand and relief on the other. Exasperation, because the face recognition technology inevitably always fails to recognise me. Relief, because we seem to be safely years away from the Orwellian reality of states controlling every aspect of our lives; something the media is keenly warning us against each day.

Dan Kalinski

CEO, iProspect Australia and New Zealand

And to add after looking at event pictures plus, observing all AU's visible Blonde Bimbos (think Julie Bishop to this Georgie Gardnerare)...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

CMO 50 2017 announcement mentioning "innovation". I checked date and its November not April so its wasn't an April Fools' Joke. Australia...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

I worked at Momentum when the transformation started way back in 2013 (not 2015 as stated in the article). It was a painfully slow and co...

Jay

How Momentum Energy has transformed its entire business to be customer-led

Read more

Another buzzword thoughtlessly latched onto, without any thought for the implications on the organisations that have to lumber through th...

Tired

Rolling out agile marketing at Deakin

Read more

Useful., also don’t miss out on these 5 features of Adobe Experience Cloud - Visit here > http://www.softcrylic.com/b...

Sunil Joseph

Adobe debuts Advertising Cloud, Experience Cloud

Read more

Latest Podcast

More podcasts

Sign in