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Facebook To Start Sharing Ad Revenue With Video Partners

Facebook To Start Sharing Ad Revenue With Video Partners
[Photo: Artur Debat / Contributor/Getty Images]

Facebook has just made another change to its burgeoning video advertising business. Effective today, Facebook is testing out sharing video ad revenue with video partners. The move is similar to YouTube’s profit-sharing mechanism, and is aimed at the same brands that work with YouTube.

According to Variety, Facebook has been quietly running a small-scale test of a “Suggested Videos” feature in its iPhone app, and the social network will soon roll out inline autoplay ads that appear between the suggested videos. Facebook will keep 45% of the revenue from those ads, and give 55% to partners–the exact split that YouTube already offers.

As Dan Rose, vice president of partnerships, told Variety, Facebook believes that its model–which automatically shows advertisements to users in its feed–will give advertisers more bang for their buck than YouTube:

“We’ve heard consistently from media companies and other video creators that if they were able to make money from their videos, they would publish more. We hear they get a lot of value from the distribution and promotion of their videos on Facebook . . . and we think this product will amplify that.”

Partners in the program currently include Fox Sports, the NBA, Hearst, Funny or Die, and Tastemade. Facebook is only running these ads on iPhone at the moment, but the company expects to bring the product to Android in the future.

[via Variety]

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