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Facebook Lures Video Creators Through Ad Revenue Earnings

|Includes: Facebook (FB)

Facebook has decided to appease video creators through its ad revenue sharing formula.

Facebook has taken a step to appease video creators by proclaiming its plans to share ad revenue with developers, as reported by Facebook news. It has been revealed that the company has tested its suggested video update on a small scale. Some of its iOS users also witnessed the test.

When a user taps to see videos related to a person's Newsfeed, he or she is able to benefit from a string of related content extracted from the video that is uploaded on the social platform. Facebook news today informed that the company would supplement update with inline autoplay advertisements that could be witnessed between clips.

The social media giant would earn 45% of the revenue generated by those ads, while the residual amount would be shared with developers, whose videos are depicted in the suggested video window based on the time that users allocate for viewing each clip.

Facebook's Vice President of Partnerships, David Rose, has stated that media companies have often told the management that if they were allowed to generate funds from videos, then they would post more. He added further that it has heard that they get a lot of value from promotion and launch of their products.

Facebook breaking news affirmed that a number of companies, such as Tastemade, Funny or Die, Hearst, and Fox Sports, have helped it to test the feature. It is currently not letting collaborators to sell video ads through the service but it can in the nearby future. Commercial sources indicated that the ads displayed by the feature would be chosen from the group of video as that promoters have already purchased for Newsfeed.

In the next few weeks, the Cambridge-based networking enterprise intends to extend the test of the creator-friendly update to several million users and start launching ads. For the Facebook, which already has more than 1,000,000,000 active monthly users, the figure is quite small.

It is expected that the Apple's iPhone users would initially benefit from the launch of the new digital update. The network developer wants to introduce it through Android devices and web in the nearby future. It hopes to capture a significant market.

The test of the feature has indicated that it would increase the time spent by viewers on the platform. Corporate executives of the social network operator should now speed up the process of test launching the update; otherwise, they might fail to appease video developers and reap the rewards.