Ustream Brings Live Video to Facebook

A friend chuckled to me the other day that ads on Facebook were going for 60 cent CPM’s. He hadn’t heard that they were actually going for far lower than that in some cases..

Yes, Facebook continues to struggle with providing value and ROI with ad
sales on the site; even though they are reaching some
of the right folks
with targeted ads.


However, as I’ve noted in some recent entries within
this blog
and the RaceTalk
, they are making very steady progress in appealing to marketers on
other fronts. Fan and brand pages, check.
Vanity URL’s, check.

Today, Facebook took another huge step in appealing to marketers by bringing
live video and real-time chat features to its 200 million+ users. To do so, it is launching the Facebook
Live Stream Box
: a feature that any Website or developer can use to enable
Facebook users to connect, share, and post updates in real-time as they watch
live streaming events and video. For the time being, the most important place
where it can be used? On Facebook.

which has teamed up in the past with Facebook to support streaming
presentations, including a series of recent Jonas Brothers Webcasts (example below) on their Facebook Fan Page, is the first developer to offer (the
extension of) their services to artists and brands under this new feature. 


They’ll likely have people lining-up to take advantage of it,
if the Jonas Brothers trial can be replicated in any way. According to Facebook
the live following of the Jonas brothers Webcasts led to 1.5million
updates – averaging 23,000 posts per minute – and more than 100,000 viewers.

In fact, given the demand they expect and the limited customized players
they can build, Ustream has created an application process for
brands and artists. Those that are chosen will have the options of: 1) A free
ad-supported version – Partners Only 2) A white-label version, not supported by
ads, which will cost $15,000 to develop.

While this may sound like a lot at first (especially for some artists), it’s
really a small price for marketers that are used to spending 10’s of millions
of dollars on television advertising. Despite some misperceptions, the highly sought after teen to twenty demographic is still watching a lot of TV, and tapping new strategies to reach them within this hybrid of a social network-based, TV experience will continue to grow in importance.


As for Facebook. It has only been able to turn analog dollars into digital dimes to date, but post-analog riches could lie ahead, if this is a sign of things to come. 


About the author

Kyle Austin is marketing communications consultant, as well as the founder and managing partner at Beantown Media Ventures (BMV), a digital content and PR agency for startups. Throughout his career Kyle has provided marketing, communications, public relations and business development counsel for Fortune 500 consumer technology brands, venture-backed startups and non-profits. Kyle lives in Boston and holds an MBA from Babson College's Franklin W