Photo courtesy of CNN
Facebook To Pay Advertisers Ad Revenue Up To 55% And Will Give YouTube Big Competition
On July 1st Facebook made a statement that they are going to fully roll out 'suggested videos' to their clients, which means whenever they view a video in their feed, a suggestion will also come up for another video. Mixed in between these suggested videos will be sponsored video ads. If you do a video, and someone clicks on one of these suggest video ads, you could earn up to 55% of the ad revenue. Previously YouTube was the only other prominant social media channel where such ad revenue could be made and many bloggers have become millionaires (or six-figure earners) with video on the platform. I predict Facebook will outpace YouTube in two years.
Currently Facebook videos are showing data of having 4 BILLION VIEWS per day! When Facebook decided to make suggested videos an official feature, the company and creators will now split the associated ad revenue, with 45% of the money going to Facebook and 55% going to the creators. That's the same revenue split that YouTube typically offers creators, but Facebook is calculating the revenue a bit differently.
When Facebook spoke to the Wall Street Journal they spoke of big opportunities for advertisers. Facebook now offers an option for marketers to pay up only after a video has played for 10 seconds, The Wall Street Journal reports. Previously, a marketer was charged for each impression made on the video even if it was merely watched for a brief moment while it auto-played. Now they're not charging advertisers until the video has gone a full 3 seconds.
A Facebook spokesperson said the company still believes its cost-per-impression format will remain more popular.
This is BIG NEWS and a big money-making opportunity for bloggers who are using the Facebook Business pages to grow their client base. For those who have followed my Facebook Ads training, it's a BIG opportunity to make more money with what you're already doing!
If you're already doing $10 per day in ads to grow your page to highly targeted followers, as I teach, and you're doing regular engaging videos, this is a big win-win without ANY extra effort on your part!
On July 1st Facebook announced it will be testing showing people who check Facebook on their iPhones a list of related videos when they click to watch certain videos. Those suggested videos feeds will include video ads, and Facebook will split the money from those ad views with certain creators and media companies.
Take a look at this blip from Facebook's Media blog:
"We’re increasingly seeing a shift towards visual content on Facebook, especially with video. In just one year, the number of video posts per person has increased 75% globally and 94% in the US. And with people creating, posting and interacting with more videos on Facebook, the composition of News Feed is changing. Globally, the amount of video from people and brands in News Feed has increased 3.6x year-over-year."
“We strongly believe in giving marketers flexibility over how they buy video ads, and we listened to feedback which is why we’re offering the new cost-per-view option,” the spokesperson told the Journal. “We don’t believe it’s the best option in terms of capturing the best value and brand objectives marketers care about, but we want to give them control and choice over how they buy.”
Here are 7 parameters you need to know before creating a Facebook video ad:
- Allowable video format: .MOV
- Maximum file size: 1 GB
- Minimum resolution: 720p
- Recommended resolution: 1080 p
- Minimum aspect ratio: 16:9
- Recommended thumbnail size: 1200 by 675 pixels
- Copy length: 90 characters*
* Regarding copy length, if you're creating different ads for different placements, you can write more into your copy:
- Mobile news feed: 110 characters
- Desktop news feed: 500 characters
- Right column: 90 characters
For more information check the Facebook video ads guide.
If you aren't doing videos for your brand yet, let me teach you how to cut your ad spend in half, learn the strategies I used over four years to grow my highly-targeted business page with 1.1 MILLION people and grew a multi-million dollar brand. My brand-new webinar series "Facebook Ads 2.0" starts this Thursday! More details: http://www.arealchange.com/facebook
With love,
Sandi Krakowski, Facebook Ad Specialist
