Date
26 September 2017
Facebook is expanding its video advertising service to markets outside the US. Photo: Bloomberg
Facebook is expanding its video advertising service to markets outside the US. Photo: Bloomberg

The new ad model: short video on social media

What can one achieve in just 15 seconds? According to social media giant Facebook, it shouldn’t take more than that to sell a product or promote a brand.

As the company expands its video advertising service into more markets, 15-second video ads will appear in users’ newsfeeds; the ads will play automatically with the sound muted until they are clicked on.

Facebook began selling the ads in the United States in March to a small group of marketers including insurance company Progressive Corp and television broadcaster NBC, a unit of Comcast Corp.

Now, the company is expanding the new video advertising servive to seven countries outside the US, including Britain, Brazil, Japan and Canada, according to Reuters.

The video ad push already appears to be paying off. Publicis Groupe, the world’s No. 3 advertising holding company, has struck a partnership with Facebook, the companies said on Monday.

Publicis Groupe and their clients — which include Procter & Gamble, Verizon, Walmart and Coca-Cola — will receive benefits such as favorable rates on a handful of Facebook products, the group said in a statement. The deal is said to be worth hundreds of millions of dollars.

Facebook last month reported revenue of US$2.5 billion for the first quarter of 2014, up 72 percent over the previous year.

Short video is the latest trend among social media. Other social media site like Vine, Keek and Instagram have proved that point as users are willing to watch creative short videos to kill time.

US publisher Simon & Schuster has put up a 6-second ad through Vine last year, a rare move as the firm seldom places advertisements through TV or other video media. 

As for the prospects in the China market, most foreign social sites are unable to enter China at present. As the sites begin monetizing on short videos on other markets, their Chinese counterparts are likely to jump on to the bandwagon to take advantage of the void in the mainland.

Tencent’s (00700.HK) short video brand Weishi may be best positioned to ride the wave. Xiaomi short videos are a successful case. The mobile handset brand became the first to surpass the milestone of 10 million hit rates earlier this month as it shares its video on the Weishi platform.

Sina also has its own short video platform Sina Miaopai, but the scale is still relatively small.

– Contact the writer at [email protected]

RC

EJ Insight writer

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