Facebook is working on an app for TV platforms such as Android TV, Apple TV and set-top boxes, according to anonymous internal sources. As reported, the social media company is in the process of acquiring some form of programming to launch an app that will allow it to compete with channels and other video services, though it has secretly declined to name the media service with which Facebook has been in talks so far. The plan is to acquire the highest level of original and exclusive programming, as well as sell advertising for the same, as Facebook typically avoids YouTube ads. There is currently no information on how the app will look and function, when it will be available, or which platforms will support it.
Facebook will further emphasize video content, thereby increasing profits from the popularity of video ads. For example, video content is coming to Instagram, and Facebook has made changes to its News Feed algorithms to emphasize videos under 90 seconds, giving them more room to run ads. Facebook's emphasis on video is nothing new, but it reached a peak in the middle of last year, and video advertising, predictably enough, followed suit.
In the US alone, the TV advertising space is worth about $70 billion. With its flagship News Feed product approaching an advertising plateau, rather than cut back on user experience to introduce more ads, Facebook has decided to simply take its advertising elsewhere. Ads have started appearing in Messenger, and users have found video ads on the main Facebook page and Instagram. This is happening for a "slice of the huge TV advertising pie," and it doesn't seem very logical. Studies show that the average American watches four hours of TV a day, while Facebook only has fifty minutes of average user time—making the proposition of increased screen time and new ad formats and content all the more appealing.
Author: Daniel Fuller
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