There are high expectations for Facebook’s plans to license music and share advertising revenues from streams of videos including it. But it’s important not to forget the question about how lucrative those revenues will be.
Or won’t be, if you read Digiday’s feature offering early feedback from video publishers who’ve been testing Facebook’s ‘mid-roll’ ads in their content.
“One publisher said its Facebook-monetised videos had an average CPM of 15 cents. A second publisher, which calculated ad rates based on video views that lasted long enough to reach the ad break, said the average CPM for its mid-rolls is 75 cents,” it reported.
“A third publisher made roughly $500 from more than 20 million total video views on that page in September… A fifth publisher, when asked about its Facebook mid-roll CPMs, responded by texting lyrics to Flo Rida’s ‘Low’.”
That’s a nice touch.
The issue here is that Facebook counts a ‘view’ as more than three seconds, but a mid-roll ad only appears after the first 20 seconds, so it seems a lot of ‘views’ are not generating ad revenues.
It’s early days, and mid-roll ads won’t be Facebook’s only way of making money from video and sharing it with partners though.
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