Facebook is about to get more costly thanks to some signifiant Facebook newsfeed changes. With Facebook clamping down on media within the newsfeed, executives have legitimate concerns that it could impact how much money publishers can make from custom and sponsored videos. For instance, the cost models for branded content will likely change. As three executives said, it will cost more to run paid campaigns to seed videos in front of users in the news feed, which will cut into profit margins.
“My gut says a lot of people are going to have to increase paid budgets to hit their guarantees,” said one CRO of a digital publisher. “Candidly, does that change anything? I’m not sure — a lot of people were already masking that they were putting paid media behind some of this content — but it probably will affect the bottom line in some way.”
How much this impacts publishers’ overall revenues remains to be seen.
Read more at Digiday.
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