8 Billion Video Views Per Day for Facebook
Facebook wants to be best site to watch and share videos
Facebook reported its third quarter 2015 results on Wednesday 3rd November. Alphabet released theirs for Google on Friday 23rd October. Now video marketers are realising they are facing a two-party system.
8 billion video views everyday on Facebook.
Mark Zuckerberg, CEO of Facebook, confirmed at the conference opening that Facebook now has 1.55 billion user every month an gave some more interesting stats about the site:
• More than 1 billion people use Facebook every single day
• 1.39 billion people use Facebook on mobile devices, including more than 1 billion on Android
• Facebook has 8 billion videos views daily
• More than 500 million people watch videos daily on the site
• Over 1.5m small businesses posted videos to Facebook in September
Zuckerberg wanted to make it clear that Facebook focuses on investors, who in turn focus on advertisers, who are focused on reach – in particular mobile reach. He wants the video advertisers, whose contribution to uploads is including in the stats, to use the ‘views’ as a standard metric, but comparing the views on YouTube and Facebook views is similar to comparing apples and oranges.
Video Views: Facebook vs. YouTube
Zuckerberg stated that Facebooks new video tools for pages are live and the site has been testing out a dedicated video section. He commented:
“Over the next few years, video is going to be some of the most engaging content online. And by continuing to innovate here, we have a chance to build the best place to watch and share videos.”
YouTube allows over a billion people to discover, watch and share originally-created videos. The main difference between Facebook and YouTube is that YouTube focuses on helping people discover videos. YouTube’s Content ID program ensures that the discovered videos are ‘originally-created videos’. Facebook just focuses on watching and sharing.
Zuckerberg also mentioned that Instagram, the photo & video sharing app which Zuckerberg bought, now has 400 million monthly active users, and now more than 80 million photos are shared on the app every day. Although Instagram is a photo and video sharing site he omitted how many videos are being shared.
Facebook’s Mobile Ad Revenue Increased
Facebook’s COO, Sheryl Sandberg, shared that the revenue from the mobile ads increased 73% year on year to $3.4billion. Meaning mobiles account for around 78% of Facebook’s total revenue from advertising. Facebook is focusing more on mobiles. Sandberg stated:
“The average American adult spends 25% of their media time on mobile, and Facebook and Instagram together continue to account for over 1 in 5 minutes on mobile in the US.”
Mobiles seem to be becoming more important. Sandberg also stated that Facebook was good for marketers as it has “the best performing mobile ad products, and video is making them even better.” She believes that Facebook video would “give the marketer a chance to reach a mass audience, with great cross device targeting and measurement.”
Video Advertising on Facebook is Working for Retailers
Sandberg stated: “Video ads complement TV ads. According to a recent study with Nielsen Research, marketers using Facebook ads with TV ads saw higher reach, ad recall, brand linkage and likability. We recently introduced Target Rating Point (TRP) buying, so that marketers can plan, buy and measure video ads on Facebook the same way they do on TV. We’re pleased with the feedback we’re receiving on this from marketers and agencies. Our third priority is making our ads more relevant and effective. Carousel ads show multiple images, and now videos and drive 30% to 50% lower cost per conversion than single-image link ads.”
Cost-per-conversion is a better metric to use than TRPs. And Return on Investment (ROI) is also better to use, although video marketers should actually use Return on Marketing Investment (ROMI). If Facebook ads can generate results comparable to searches, then they would be a nice complement to Google AdWords for video campaigns.
Two Party System for Video Marketers to face
Video marketers are now faced with a two party system. According to eMarketer, this year’s global mobile ad spending is expected to be $72.1 billion. Google’s share is projected to be 33.&% of this market, whereas Facebook’s share is forecasted at 17.4%. According to comShare, the Top 6 and 8 of the Top 9 apps in US are owned by Facebook and Google.
Casual observers today mistakenly believe that it doesn’t matter if you choose YouTube or Facebook video. They think that the newer platform is better. But there is a huge difference between YouTube’s and Facebook’s views of video marketing and video advertising.
Facebook is focused on advertisers and narrowly focused on views. A video is considered as ‘viewed’ when it goes past the 3-second mark whether the viewer has the sound on or not. Facebook has started to help the copyright owners deal with aggregators. Facebook wants to return to using GRPs, which have transmogrified into TRPs, and could be used as metrics for planning, buying and measuring video ads.
YouTube has more of a balance between partners and advertisers. Their partner revenue is up 50% year over year-this level of growth has occurred for 3 consecutive years. The number of channels earning six-figures per year is up 50% year on year. Viewers are given the choice over which ads they want to watch and connecting brands with a more engaged audience. With TrueView ads there’s no cost for random impressions or maybe-they-saw-its. The viewer has to choose to watch a video or there’s no charge. Trials for the Content ID system started in June 2007 to help copyright owners to identify and manage their content easily. YouTube not only urges advertisers to go beyond impressions and cicks, it offers Google’s Brand Lift solution to help measure their brand awareness, ad recall and brand interest.
So sounds like another reason for businesses to be investing in video for 2016 and going forwarded, consumers are actively seeking out video content and Cisco has reported that by 2017 video will account for at least 69% of consumer traffic… time to get those video strategy and content plans moving!