Facebook To Make More Ad Dollars For Video Creators With Their New Revenue Sharing Program, Suggested Videos

Facebook Inc intends to share the profitability of its Four Billion viewership in the social media's videos. The Company launches Suggested Videos, A New Revenue Sharing Program, which aims to help Video Creators put ads on their contents.

Suggested Videos, is an upcoming Facebook feature that will put ads in professionally produced content. It is similar to the advertisements in the TV and it will aid Video Creators monetize their contents. According to the Wall Street Journal, Facebook Inc will start using ad revenue with the video creators of the site to attract more content and ads. If this will happen, Facebook will become a big competitor to YouTube, which is the online video leg of Google Inc.

Fortune reports that Facebook will earn from this venture the same way as YouTube does. 55 percent of the money made from the ads will go to the creator, while 45 percent goes to Facebook. This new program has garnered 12 investors, including Fox Sports, Funny or Die, Hearst,NDA, and Tastemade.

Facebook will show the ads not in an auto-play pre-roll way, which is what YouTube does that most users hate. Facebook ads will play automatically with the sound off, which is why their revenue split is a bit more complicated than its competitors.

Facebook vice president of partnerships Dan Rose said, partners would publish a lot more if they could make money out of the distribution.

According to Computer World, the launch of Suggested Videos is the first time that Facebook will share ad revenue with their video producing partners, which is expected to bring more video producers from YouTube to Facebook.

This Facebook initiative targets smartphone users, which is the source of the 75 percent of videos viewed on this social media platform. According to RBC Capital Markets analyst Mark Mahaney, YouTube has created about $4 billion in revenue. But Mahaney expects Facebook to earn $1.5 billion in revenue from their pumped up video innovations in 2016.