Facebook’s Video is Delivering Low Ad Revenue for Content Creators (Oct 2, 2017)
Digiday has done some digging on the CPMs (payout rates for advertising) on Facebook’s video platform, and has found that on the whole they’re pretty low. One publisher suggested an average CPM of 15 cents, which is indeed low by industry standards, and that theme if not the exact amount was confirmed by others Digiday spoke to. One big challenge, though, in measuring CPMs or other industry-standard ad metrics is that many publishers publish videos which don’t use the mid-roll ad format alongside those that do, so the denominator may be skewing the results a little. But what seems clearer is that mid-roll ads perform far less well than the pre-roll ads YouTube has used very successfully, something I predicted in this piece a few weeks ago on Facebook’s big video pivot. I suspect Facebook will struggle to compensate creators adequately as long as mid-roll remains essentially the only way to monetize videos, and when it likely drives a high abandonment rate.
via Digiday
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