It seems like everytime Facebook does something with their video system, there are a few articles saying that Google should be super duper worried, and in a few cases, that the end is nigh for YouTube. However, the reality is that even with the latest move from Facebook, which involves offering profit sharing to video content creators, the site still isn’t up to YouTube’s current level.
Although Facebook has repeated trumpeted that the video portion of the social media network is blossoming and that each day, more than 4 billion videos uploaded to the network are watched, major movers and shakers on YouTube are still reluctant to do anything more than link to their videos on Facebook. The reason is that major players on YouTube aren’t just in it for the subscriber counts and the comments; they are also there for the money.
Google is a bit cagey about exactly how much money YouTube Partner’s make, but ReelSEO reports that the numbers are around 45 to 55%. Since most views only provide a fraction of a cent, volume is key to actually making any money, which is why most people don’t want to make their videos available on Facebook for free.
Fortune is reporting that Facebook has put together a similar plan, with the social media site only keeping 45% of profits. Since it’s still in a testing phase, only a few creators have been selected, which include Funny or Die and Fox Sports.
Their Ad Format Is… Odd
Facebook has auto-play videos, so attaching pre-load ads to these videos is a recipe for annoying the cats out of users. Therefore, they’ve created a video format that I think will only work if there are a lot of binge video viewers out there, and it’s one that may cut sharply into profit potential for content creators.
Since they can’t really do pre-roll ads, and post roll-ads are also fairly pointless, they’ll inject ads after one video ends and before another begins, the way that TV commercials do. Facebook apparently assumes that people will simply keep watching videos, one after another, based on video suggestions that will pop up after a video is done playing.
Due to the fact that videos will not have their own ads attached to them the way YouTube does, content creators will basically be profit sharing with Facebook and any other video that ended up being watched around the time the ad showed up. Facebook doesn’t have a YouTube setup where people can visit a content creator’s channel, and creators will be profit sharing with several people, in addition to Facebook itself, so if I’m a major player at YouTube, I’m going to be waiting for a better deal.