Facebook Shares Ad Revenue With Video Content Creators

 Facebook To Share Ad Revenue With Video Content CreatorsGood News: Video Content Creators To Receive Checks From Facebook

At the start of July, Facebook announced that it would begin to pay video content creators a percentage of video ad sales. Facebook’s new undertaking and foray into the YouTube-dominated world of online video publishing will feature two new initiatives: Suggested Videos and their accompanying Ad Revenue Share Program.

In the past, YouTubers have used Facebook’s massive reach to successfully promote and drive views to their YouTube-hosted videos. With the advent of Facebook’s new video ad share program, content creators will not only be able to leverage Facebook’s immense exposure, but also get paid directly for their video views.

Presently, Facebook is offering these new initiative opportunities only to a few select major publishers including NBA, Hearst Corporation, Fox Sports, Funny or Die, and Tastemade. At this point, it is unclear when Facebook will begin to offer this new revenue share program with individual content creators. Nevertheless prominent YouTubers like The Young Turks (part of the MCN TYT Network), Viner Arron Crascall, and multi-platform creator The Eh Bee Family all have seen success sharing their videos on Facebook.

Facebook’s new Suggest Video platform will debut first to iOS in the upcoming few weeks.

What’s New? Dedicated Video Feed + Ad Share Split

With Facebook’s new Suggested Videos, the user will be redirected to the new feature after playing a video on their News Feed. Unlike YouTube, which features it’s video ads at the start of each video viewed, Facebook’s video ad content will autoplay (with sound) interspersed among creator content in the new Suggested Video feed.

Although the overarching ad revenue percentage share is identical to YouTube’s (55% towards content creators, 45% to Facebook), content creators may not receive a direct 55%. According to re/code, “you may watch three videos and see just one video ad. In that instance, Facebook will divide that 55 percent among the three video creators based on how much time you spent watching each video. Facebook still gets its 45 percent.”

Facebook has yet to demarcate how it will charge advertisers.

The Imminent Threat To YouTube

Unlike many of YouTube’s purported competitors, Facebook enters the video publishing space full force with it’s well-established reach and prodigious user base. Organic growth aside, the total number of online video views is limited. YouTube currently commands the vast majority of online video views. With Facebook’s new video feed, YouTube stands to lose a sizable percentage of those total views.

As such, the development of Facebook’s new video platform will syphon away a percentage of YouTube’s traffic and profitability.

What This Means For Content Creators

In it’s decade long history, YouTube has quickly become saturated with makeup beauty gurus, legions of gamers, and home-grown YouTube content creators (“YouTubers” – like filmmaker Casey Neistat, singer Kina Grannis, or 6-sister group, Cimorelli) who have all leveraged YouTube’s video publishing platform to build sustainable businesses. As these YouTubers gained approbation, more and more content creators took to the space ultimately saturating the YouTube market.

With Facebook’s new revenue share program, video content creators will now have a new, far-reaching, and profitable platform to publish to. As it did with YouTube, Facebook’s video ad share program will usher in new content creators eager to take advantage of untapped revenue streams.