While known for it's presence as a social networking platform, Facebook
Formed by CEO Mark Zuckerberg in 2004, Facebook has become quite the household name through its offering of social networking. Beginning as a networking website for Harvard University students, and later other American universities, Facebook quickly expanded itself into a global hub for social media and advertising. By 2006, Facebook became available to anyone 13 years old and up. The gradual availability of Facebook for users across ages and locations proved successful by the the reported monthly active users of one billion in 2012, and 1.23 billion users by 2014. Along with the heavy user use, Facebook launched its focus on advertising with business pages being introduced in 2009. This allowed users to directly come into contact with businesses as they would with their Facebook friends, bringing in more earnings to both Facebook and the businesses themselves. An effective way of extending the global market online, Facebook reached 3 million active advertisers in 2016, mostly composed of advertisers outside the US.
Along with Buzzfeed and Vox Media, Facebook's recent focus on video content is characterized by its recent agreement to purchase video programming from other well-known companies such as ATTN and Group Nine Media. While shorter videos are already prominent on Facebook, as seen by the popular short-form 'Tasty' cooking clips provided by Buzzfeed, the real challenge will be providing longer form videos. Facebook is reportedly planning to own and offer 20 to 30 minute scripted shows, and pay as much as $250,000 for them. For the shorter shows owned by others, creators will receive 55% of the ad revenue generated. Offering something different than the Google
As a company, Facebook's revenue is primarily fueled by advertising. By teaming up with different companies to provide streamlined videos for the average user, Facebook is essentially attempting to increase its daily user access. Already boasting 1.23 billion daily users, Facebook can rake in more income through more time spent watching advertisements through the form of video.
In fact, Facebook's desire for more advertisements by recreating itself as an additional hub for video will evoke competition from social media companies like Youtube, Snapchat
It's apparent that there is a race to get advertising dollars through video programming across Internet platforms, and Facebook is determined to come in at first place.
