Facebook and others use share of advertising revenue to attract YouTube's popularity
Facebook has dabbled in video
BEIJING, Aug. 2 (Xinhua) -- A few years ago, social media companies paid popular users inconceivable, Bloomberg reported. The business model of social media is to provide services to users free of charge and collect user information. But now, Facebook, Instagram and Twitter are making big strides into high-quality video content and attracting YouTube fans, who are considering changing their business models. They want to attract net red. Facebook and Twitter realize that if they want the most and most active audiences, they need videos that attract the most viewers. This means that it is split with Net-a-Go into advertising revenue.
Krishna Subramanian, captiv8's director, says that "content creators control user activity and eyeballs." The more content they upload, the more active Facebook users are. Spliting into advertising revenue will solve a major problem between the platform and the producer, who will post more content. "
Facebook and Twitter want Net-a-Shirts to post a large number of non-ad-based original videos on their platforms. They also need to deal with ad-like videos, which don't bring them a penny in advertising revenue. Clearly unable to "eliminate" ad-like videos, social media companies want Net-a-Shirts to label them as ads and try to persuade the brands behind them to pay to promote them. For social media companies, it's certainly a balance that's not easy to grasp: make the web happy and don't run to other platforms, but keep a firm grip on the nature of advertising in order to earn advertising revenue - and not annoy users.
Twitter will share advertising revenue with Online Red through a program called Amplify. Mike Park, Twitter's head of content collaborations, said the company had poached experts from YouTube who had close ties to the network. His team and Vine executives met with the most popular online network to learn about their plans to build the brand.
Like YouTube, Twitter is starting to put in front ads. One source said Twitter was only 30 per cent of advertising revenue and the remaining 70 per cent was red - the same proportion as it had agreed with media outlets such as Buzzfeed and National Geographic.
"We've had a lot of active audiences, but we've listened to them because of the lack of revenue-generating opportunities," Mr Parker said. "
But at Facebook, executives are opposed to head-to-head ads because videos are automatically played when users browse the stream, and the risk of interstaged ads is high because users skip messages. "We're just hoping to find a model that's better for our platform," said Fidji Simo, Facebook's head of video. "Like Parker, she's been actively attracting nets. Last month, she called on Net-a-Go to post a video on Facebook on Vidcon, an online video conference.
According to the Wall Street Journal, Facebook sends cash directly to popular networks, such as Kevin Hart, who signed a $600,000 contract with Facebook. But Seymogen is working on a long-term revenue-sharing solution that will benefit more net-a-goers. She says it might be a good idea to put ads in long videos.
"We're going to try a number of different formats in the coming months, and we may not adopt a one-size-fits-all model, " says Mr Simo. "In the early trials, Facebook and Net-a-Go shared 55 per cent of advertising revenue - the same as YouTube.
Of course, Net-a-Go is not waiting for social media companies to develop revenue-sharing plans, they completely bypass social media companies, and the brand reached an agreement to shoot advertising video. According to Captiv8, the brand spends more than $255 million a month on Instagram alone.
In the past, Instagram prevented users from posting ad-like videos and blocked external links. But now it allows users to tag brands, which can pay to promote the videos as official ads. The video length has also been extended from the past 15 seconds to 60 seconds. It's clearly a better way to offer the most popular online fans a way to make money, rather than simply blocking them and alienating their large fan base.
Ads that are not purchased through the system can make a mess of the Instagram user experience. Recently, Instagram posts have changed from sorted by reverse time to sorted by an algorithm, meaning Instagram has to worry about how often ads appear.
The obvious question is, will the brand buy it? Would you like to spend twice on the same video? For net-a-share, which has already generated huge revenues on YouTube, split-up revenues don't make much sense.
(Source: Phoenix Technology)
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