Facebook earns about 98% of its revenue from advertising, and retains 45% of advertising revenue earned by creators
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Some Facebook users will now be able to earn money from their short video posts, provided their viewers see an ad in the video after 30 seconds.
The social network previously allowed demonetization for more than three minutes via in-stream ads on the video, when the video would flash the ads after 60 seconds.
Ads on videos longer than three minutes can now display ads at the 45-second mark, the company said in a statement.
Facebook introduced in-stream ads in 2017, allowing creators to monetize videos from the watch section, including on-demand and live videos. The move was said to help creators increase visibility and increase engagement. According to Facebook, payment for in-stream ads exceeded 55% from 2019 to 2020.
Also read Facebook’s feud with Apple in 2021 could dent advertising revenue
Only users over 18 years of age with more than 10,000 followers, and a total of 600,000 minutes watched by any combination of video uploads, are eligible for demonetization. Additionally, they must have five or more active videos uploaded or live videos, Facebook said.
The move to promote the short video is seen as an effort to popularize the Instagram reels, the Facebook version of rival Tiktok. Recently, Facebook stated that it is testing a feature to allow users to post reels on their Facebook profiles. It has also been said that some of its users can earn money through sticker advertisements on Facebook Stories. Facebook earns about 98% of its revenue from advertising, and retains 45% of advertising revenue earned by creators.
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