Facebook is creating a TV application for set-top boxes, working like Apple TV to provide “TV-quality” shows licensed by the company, according to a news report.
The Wall Street Journal reports that Facebook is currently trying to make deals with major studios to produce content for the yet-to-be named app.
Facebook reported a mammoth Q4 with 50% of its revenue coming from mobile advertisements. It’s not a hidden fact that its core business revolves around ad revenue, and the introduction of a TV app will create another facet for marketers and brands to benefit.
The move would be a huge opportunity for brands to reach an entirely new audience, native to the social media era.
Broadcasting to a larger screen means that longer, more “premium,” video content commands much higher rates than the shorter videos that make up much of Facebook’s existing content.
Notably, Facebook also updated its News Feed last week to place a greater emphasis on longer videos.
The company is also testing mid-roll ads (ads that play in the middle of a video, as opposed to pre-roll, which play at the beginning) that kick in after 90 seconds.
Darren Khan, the UK and European MD at online video marketplace Genero, commented on the rumoured Facebook TV application and opportunity it poses to brands, which must adopt a more agile, creative process that creates content audiences actually want to see.
“The rumours that Facebook might be developing a video-centric application for the television market is the biggest indicator yet that video will dominate the advertising agenda in the 2017 and beyond,” Khan said.
“We have already seen social media platforms alike implement a strategy that thrives on short, snappy video content, with outlets like Snapchat and Instagram thriving. Now Facebook wants a bigger slice of the pie. There are now a huge number of platforms for advertisers to take advantage of and creative agencies & marketers are being forced to innovatively create new content, as opposed to just using a cut and paste format; Facebook’s recent move to trial ads on its Messenger app is another example of the myriad platforms available and one brands must consider when creating bespoke content.
“Facebook’s ‘set-top box app’ could be the perfect platform for brands to produce content that the consumer actually wants to see, but personality and storytelling will be the key. In advertising, integrated services are becoming crucial too as brands strive to both meet the demands of individual target demographics and keep its value proposition consistent. Brands producing video content must ensure they are fit for feed and achieve cut through, thus achieving a consistent messaging. The new world of video is now and the opportunity to use the most engaging form of content to reach audiences across almost every channel is possible. But brands and their agencies need to adopt more agile creative & production processes if they’re going to be able to take advantage of the opportunity.”