Facebook made waves in the media industry with its announcement it would put a new focus on “meaningful social interactions” with close friends and family in its News Feed — the column that people scroll through when they open the site — instead of content from publishers and brands, reports The New York Times, which added that Facebook, “which together with Google dominates the online advertising industry, has emphasized to ad agencies that the shift will mostly affect the visibility of publishers that have been able to reach readers for free through News Feed’s automated placement of their posts. It won’t, the company said, affect the sponsored posts that businesses pay to show people as they scroll.
“But several advertising executives have speculated that the new rules could ultimately fuel the social network’s long-held video ambitions.
“As advertisers examine the details that Facebook has shared so far, like reducing videos from publishers in the feed and giving priority to content that can “spark conversation,” some see an opening for the company’s nascent Facebook Watch video section and its live videos. And, of course, for the ad dollars that accompany such content.
““Facebook has been studying TV for a few years now, and they see there is a certain equation to the size and success of TV,” said Ben Winkler, the chief investment officer of the agency OMD. “It’s three elements: a high-quality user experience, prominent high-quality video and a curated, restricted supply of said video. What that equation results in is higher rates and stable, consistent ad dollars and growth — and Facebook is looking for ad growth.””
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