Facebook The Social Networking Giant will soon be making a big push in TV market. They are working on many VideoApp that would feature TV-Quality shows licensed by the company. As Video express very well then words so Mark is just focusing on his mission of Connecting world by entering the new market. They have already spent whole last year pushing live video, the company is focusing on large and higher quality content. Facebook users spend Avg. 50 mins a day on its product regardless of the content, according to the company.
Facebook is working on video app for set-top boxes, like the Apple TV. They have already started making a deal with major studios to produce content. The ultimate goal of the app is, of course, is to boost ad revenue. Besides having a new platform to surf ads on, the app would help the company tap into a new ad market. Video ads command more premiums over text and image based ads within the news feed.
Facebook currently is 2nd largest digital advertiser after Alphabet Inc. (GOOGLE). As might be the NEWS feed was running out of room for more ads they have might think of doing something new.
Major competition for Facebook which is rooted firmly is Youtube from Alphabet Inc. and Snapchat. For now,
Google states that they charge very low for Video Ads rather than search engine ads. Snapchat is more focused towards Content licensing, a move which has attracted Facebook. Google Revenue from Ads for 2015 was 67.39 Billion U.S. Dollar and that of Facebook was only 17.079 Billion U.S. Dollar. This slow growth in revenue could be the reason by Facebook to think on some new way of earning with existing content.
This slow growth in revenue could be the reason by Facebook to think on some new way of earning with existing content.
Facebook will mostly focus on mid ads rolls format that recalls the typical TV spot rather pre-roll video ads. The company believes pre-ads rolling are not liked by the users. So as per an official from Facebook ads will be displayed only after 20 seconds of video played and the maximum duration, for now, will be 15 seconds long. This video ad will be played in the middle of the live video for 15 seconds max.
Facebook believes this app will be the home for video content, including the original, premium content. They will be sell ads against the content giving it another way to offset the expected decline in ad growth.