What would it mean for marketers, if Facebook were to monetize the Like button for videos?
Now that it is a publicly trade entity with shareholders to keep happy, Facebook has been searching high and low for viable streams of revenue. Sure, the firm makes a nice chunk of change via display ads, but apparently that is not enough to justify its value, which as you may have heard, is astronomically high. According to reports, Facebook is working on a new monetization, it revolves around one of the most popular features to hit the platform in years the Like button.
A report from Business Insider explained that Facebook is trying to leverage the power of its social graph to create yet another advertising format. The article revealed that if a marketer?s likes and other activities can be viewed as a commercial action of sorts, then they will be interpreted as so. Here’s how the new format is supposed to work.
Let’s say that someone likes something on your Facebook page or even checks in at your place of business. Under the new format, you would be able to pay the social network to use that activity to create a Sponsored Story that is displayed more prominently and therefore, seen by more of your target audience. Early reports indicate that this new ad product would be available on a basis of cost per action (CPA), which is pretty similar to the payment model associated with Facebook?s existing advertising formats.
A report from the Post said that Facebook is currently pitching its Like-based advertising model to TV executives. This particular source revealed that the company is looking to use video as a part of the new format. As it relates to the video component, it is being discussed that Facebook would give its TV partners the ability to increase the exposure of certain video content. Presumably, this is content that has received a specific number of likes. The payoff for Facebook, would of course, be a way to boost its advertising revenue, which is something it desperately needs at this point.
How Will Facebook Faithful Respond?
Brands are always looking for a way to expand their reach on and through Facebook, so the company’s decision to monetize the like button is likely something that would go over very well with marketers. What will really be interesting to see is how users respond to the new format. Sponsored Stories has already resulted in a lawsuit from five disgruntled users, so if the social giant really is planning to use it as a part of the like-driven advertising model, it will certainly need to proceed with caution.
Right now, it looks like Facebook is still in the early stages of monetizing the like button so nothing is etched in stone. Interested marketers who can afford to invest more in their presence are encouraged to follow this story for the latest developments.