1. Main
  2. Learn
  3. Economy
  4. Companies

Facebook tests video ads in budding YouTube challenge

©Reuters/Dado Ruvic ©Reuters/Dado Ruvic

Facebook on Thursday confirmed that it is dabbling in video ads and sharing revenue with content creators, in a move that would compete with Google-owned YouTube, AFP reports.

An advertising model being tested by the leading online social network is part of a "Suggested Videos" feature designed to recommend clips for people based on snippets they tune into in News Feed at Facebook.

"We're running a new suggested videos test, which helps people discover more videos similar to the ones they enjoy," a Facebook spokesperson said in an email reply to an AFP inquiry.

"Within suggested videos, we will be running a monetization test where we will show feed-style video ads and share revenue with a group of media companies and video creators."

Suggested videos are related to what is watched by members of the social network, perhaps focused on the same topics or posted by similar publishers. The feature is being tested for some people accessing the social network with iPhones, according to Facebook.

Revenue from ads appearing in the Suggested Videos feed will be shared, with 55 percent of the money going to those providing the content, according to Facebook.

The California-based social network said that it is not taking any money in from advertising while it tinkers with the formula for serving up video marketing messages.

Industry tracker eMarketer forecast that the amount of money spent on video ads in the United States this year will hit $7.77 billion, growing slightly more than a third from the $5.81 billion spent in 2014.

Online video sharing powerhouse YouTube takes a lion's share of ad revenue, bringing in $7.6 billion in gross revenue last year, according to eMarketer.

YouTube's share of the video ad market was predicted to rise to 25 percent, with the Silicon Valley company taking in $9.5 billion globally this year. YouTube splits ad revenue with content creators.

 Facebook logo tweaked 

Facebook's foray into cashing in on video watching at the social network -- particularly on smartphones or tablets -- came as the social network finetuned its logo to be easier to read on mobile devices.

The first changes to the Facebook logo in a decade were subtle, keeping the widely-recognized lower-case 'f' but making the "a" and "b" thinner and more rounded.

The logo unveiled on Wednesday kept the style of wite letters on a blue background that it has had since it was first created in 2005.

Facebook claimed an audience of more than 1.4 billion people, and has been adapting to a trend of members increasingly accessing the social network from smartphones or tablets instead of laptop or desktop computers.

Nobel prizewinner proposes a new city in KZ
New abnormal snowfalls expected in Kazakhstan
Huge glacier retreat triggered in 1940s
Hyperloop construction begins in Las Vegas
"Moonlight" to top Spirit Awards nominations
Oil prices fall due to investors uncertainty
New dwarf galaxy discovered around Milky Way
Kanat Islam becomes a top ten WBO boxer
World oil prices continue to rise
Kazakhstan expects warming - Kazhydromet
Merkel to seek fourth term as chancellor
Sale of Tintin drawings set to break records
US, EU stocks fall as markets focus on dollar
Pacific leaders urged to defend free trade
EU warns eight nations on budget deficit
Universiade-2017: Athletic Village is ready
Bob Dylan can't make Nobel ceremony
Messi will never leave Barca - club president
Google, Facebook take aim at 'fake' news
Aerosmith announces Europe 'farewell' tour
Putin, Trump to normalise US-Russia ties
At least 10 hurt in southern Turkey blast
6.2 quake hits western Japan
OPEC agrees shock oil output cut
Israeli ex-president and Nobel laureate Peres dies
Germany blocks WhatsApp data transfers to Facebook
32,000 arrested in Turkey coup probe
Youth to the fore as Milan fashion week opens
Xenophobia threatening peace in eastern Germany
Four-in-10 Japanese are virgins: poll
Sweden re-militarises Baltic island of Gotland
China to launch second space laboratory: Xinhua
More than a billion stars mapped in Milky Way: ESA
Boxing: Golovkin eyes Saunders after stopping Brook
Kazakhstan shifts PM to security chief
Oil prices gain despite rising OPEC supply forecast
US to give Philippines military planes
Singapore wages war on Zika-bearing mosquitoes
Italy quake death toll nears 250
Viral photos add fuel to French burkini debate
18 dead as Italy struck by powerful quake
Japan's first lady visits Pearl Harbor
Pokemon's a no-go on Bangkok's roads
July was Earth's hottest month in modern times
Pakistan rock climbers scale new heights