Facebook is a free social networking site, it makes money in several non offensive ways. However, their recent money making scheme could see a reduction in users.
According to Recode, a technology website, Facebook will be including adverts part way through some of their most popular videos.
The majority of websites include video advertising at the beginning of their video, but putting a sponsored advert in the middle of content is simply unacceptable.
Facebook have refused to make a comment on the new feature and it is not sure how long the adverts will be played.
What we do know is that Facebook will receive 55 per cent of the revenue share generated from the adverts. This is a large share; research shows that it is equal to the largest video sharing service in the world YouTube.
It has only been over the last couple of years that Facebook has integrated video advertising onto its website. However, now they are about to take it to a whole new level.
According to statistics last year, 100 million hours of video per day was watched on Facebook.
“In order for Facebook to gain a share in TV advertising profits, they are going to have to invest heavily in more video.” States Eleni Marouli from the HIS Markit analyst company.
On a more positive note, Facebook have just announced that they will be launching a new video feature that will make it easier to keep in touch with friends and family.
In order to compete with Google Hangouts and Skype, they intend on introducing group video chats for Facebook Messenger.
They intend on standing out in the video communications market by allowing users to communicate with more than 50 people at a time.
This new venture will push them to the forefront of the market as competitors only allow users to speak to a maximum of 10 users at a time.
Photo credit: Keith Allison