Zuckerberg’s $1 Billion Bet on Making Facebook ‘Video-First’

Facebook reportedly will spend up to $1 billion on original content through 2018, an investment aimed to fulfill chief executive Mark Zuckerberg’s goal to make the platform “video first.” In doing so, Facebook faces stiff competition from broadcasters such as HBO, Amazon and Netflix, all of which are focused on creating premium video content to capture advertising. Zuckerberg has been opposed to paying for content, but now has said he will do so, although he believes most creators will earn via a revenue-sharing model. Continue reading Zuckerberg’s $1 Billion Bet on Making Facebook ‘Video-First’

Facebook Moves to Fix Metrics Bugs and Assuage Advertisers

In the wake of admitting it had overstated how long users spend watching videos on its site, Facebook is taking steps to regain credibility among advertisers and publishers. The company, which apologized in September, will now rely more on third-party measurement services — including comScore, Moat, Nielsen and Integral Ad Science — to ensure accurate metrics on display and video ads. Other moves include the formation of a “measurement council,” composed of ad agency execs and marketers, to develop more relevant metrics. Continue reading Facebook Moves to Fix Metrics Bugs and Assuage Advertisers

Facebook Credits Mobile Ad Growth for Major Revenue Jump

Following last week’s reports that online advertising revenue in the U.S. reached a record $59.6 billion in 2015, and that Google and Facebook claimed the largest share of the digital advertising pie, social giant Facebook announced yesterday that its ad revenue increased 57 percent in the first quarter to $5.2 billion. Notably, mobile ads represented about four-fifths of the network’s revenue. Facebook’s news countered announcements from other tech companies — including Alphabet, Apple and Twitter — all of which released disappointing first quarter figures. Continue reading Facebook Credits Mobile Ad Growth for Major Revenue Jump

Networks Test Sponsored Content and Fewer 30-Second Ads

On Monday, NBC tested out a new concept: airing more content and fewer ads. Sponsored by American Express, the additional content included “Blindspot” interviews with the show’s creator and stars, and a segment with Kathie Lee Gifford and Hoda Kotb of the “Today” show. NBC isn’t alone; Vice Media has embraced a similar advertising strategy for its new Viceland cable channel. TV networks hurting from ratings declines and cord cutting are taking a serious look at swapping out 30-second spots for sponsored content. Continue reading Networks Test Sponsored Content and Fewer 30-Second Ads

In Strategy Reversal, Yahoo Shutters its Online Video Portal

Yahoo has shut down Yahoo Screen, the company’s four-year-old video portal that had been a major component of chief exec Marissa Mayer’s turnaround strategy. Yahoo took a $42 million write-off on original video content in October, and while Yahoo Screen had yet to compete with video giant YouTube, comScore notes that the portal had about 15 million U.S. visitors in November. The portal had provided easy access to Yahoo’s video content — from digital magazines, concerts and football games to licensed reruns of “Saturday Night Live” and original series such as “Community.” Continue reading In Strategy Reversal, Yahoo Shutters its Online Video Portal

Digital Spending Grows Amongst Nation’s Biggest Marketers

According to new figures released from Kantar Media this week, the country’s largest marketers are cutting their advertising budgets as part of the transition toward increased spending on digital ads. Kantar reports that the top 10 advertisers reduced spending by 4.2 percent last year to $15.3 billion, as compared to 2013. Top advertiser Procter & Gamble, for example, cut its ad spending by 14.4 percent in 2014. Much of the spending is shifting to digital segments including video and mobile. Continue reading Digital Spending Grows Amongst Nation’s Biggest Marketers

Streaming Video Subscribers Spend More Time Watching TV

Nielsen reports that about two in five U.S. households currently subscribe to streaming video services. According to the measurement company’s latest Total Audience Report, about 36 percent of households were Netflix subscribers in November. Netflix indicates it now has 40 million paid subscribers in the U.S. Following Netflix is Amazon Prime at 13 percent and Hulu Plus at 6.5 percent, explains the Nielsen study, which also shows that streaming service subscribers spend significantly more time viewing content. Continue reading Streaming Video Subscribers Spend More Time Watching TV