Look out, YouTube. Facebook is trialing mid-roll ads for videos that are viewed for at least 20 seconds, according to a report today by Recode, which cited unnamed industry sources. The digital giant declined to comment on the report.
Simply put, Facebook wants to generate cash from the clips posted by publishers on its platform. According to Recode, video publishers will get 55 percent of the sales in a financial arrangement that mirrors how YouTube works with them.
Billions of clips are viewed daily on Facebook, so the revenue-generating prospects appear to be tremendous for the publicly traded company. Publishers should also be intrigued by the potential for a new earnings stream. It will be interesting to watch whether the mid-roll ads—after viewers are engaged with the clip for 20 seconds—prove to be effective.
