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Facebook to offer video creators ad revenue share – Telecompaper

Google’s (NASDAQ: GOOG) YouTube may still hold the top position for monthly views, but its newest competition for content creators should have it a bit anxious. For these people YouTube is definitely the preferred option as it has made a large number of “YouTubers” pretty wealthy.

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Next, switch the “Auto-Play Videos” settings to “off”.

It is not that unusual of a model or even generous, said one analyst, but there certainly will be a monetization battle that will take place between YouTube and Facebook, to entice the creators to their respective platform.

The ads will run alongside such videos beginning this fall, according to a Re/code story, which called the revenue sharing strategy a “full-on attack against YouTube”. And since Facebook autoplays videos in the news feed, all someone has to do is scroll past an ad and the advertisers is charged. Video ads would be intermingled among these videos, identical more to TV commercials. One expert said it posed a threat to YouTube.

“A lot of [our partners] have said this will be a big motivation to start publishing a lot more video content to Facebook”, said Dan Rose, VP of partnerships in Facebook. It will have to be divided with uploaders of other videos near the ad and the amount paid will depend on how long people watch.

Videos have become more prevalent as shared content on Facebook over recent months. While Facebook considers sharing and liking as signs of users’ desire to see more videos of similar content, the social site’s engineers realized not all viewers do either of those actions. “The Suggested Videos feature looks like it will be a more engaged video experience with audio on.” This past April, the company reported it was generating four billion daily “video views”, which it defines as a video watched for three seconds or more. On the other hand, someone watching a video out of sheer curiosity instead of it being something they’re actually interested in, then it could have unintended consequences. For reference, per Statista, Facebook has about 1.4 billion active users – active is the key word here, as it represents individuals who are at the very least recently participatory with the service. Firstly, the company is still indecisive about the charging method from advertisers.

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The trials began a couple weeks ago on Facebook’s iPhone platform.

A smartphone displaying Facebook video