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Facebook Hits YouTube in the Wallet: Offers Ad Revenue Sharing

Facebook’s relentless assault on YouTube continues, and this time it gets financial.

As part of its efforts to compete with YouTube, Facebook is sharing ad revenue with some of its major video partners. Facebook will offer a 55/45 revenue split, the same as YouTube, with 55 percent of ad revenue going to the partners.

facebook_lgAccording to a ReCode, Facebook will start with a few dozen selected partners, including the NBA, Fox Sports, and Hearst, and will add others over time. Taking part in the revenue split requires becoming an official partner with Facebook.

The revenue split is part of a new feed called Suggested Videos, which will debut on iOS devices in a few weeks, followed by Android and desktop later this year. When Facebook members click on a News Feed video, they’ll be taking to the new Suggested Videos feed. After they’re done watching their video, they can scroll down to see a list of related videos optimized for each viewer.

The Suggested Videos feed will have video ads. Partners will get a share of the ad revenue determined by how many of that partner’s videos the viewer watched.

“A lot of [our partners] have said this will be a big motivation to start publishing a lot more video content to Facebook,” Dan Rose, Facebook’s vice president of partnerships, told ReCode. “That’s exactly what we’re hoping for.”

Unlike YouTube, Facebook is only making ad sharing available to top publishers.

Facebook has released a flurry of changes recently to help the site compete against YouTube. OnlineVideo.net reported that Facebook is now letting video advertisers pay based on 10-second video views rather than impressions, and has changed its video suggestion algorithm to better determine what videos a viewer is interested in. Facebook also improved the video analytics it offers advertisers.


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