Facebook pushes video engagement with ‘continue watching’ feature
Social media giant Facebook is taking its video capabilities seriously. The company is looking to push engagement further with the test of a ‘continue watching’ feature, which will let people pick up videos that they started watching on their timeline but didn’t have time to finish in a single setting. The goal behind the initiative is pretty clear: Facebook has a massive advertising segment, and it wants to grow it even further.
While Facebook has outperformed in mobile advertising revenue, and grown overall to rival other online giants like Google and Yahoo, it has failed to capture the kind of big-budget campaigns that you might find on television. Pushing further into becoming a dedicated video platform (as well as a plethora of other things) could give it the potential to address this missing revenue stream.
It also makes sense to focus on video from the perspective of changing technological capabilities and audience preferences. There is little doubt that we live in a world where smart homes will soon connect TVs to laptops to thermostats to security systems. As the Internet of Things closes the gap between what we see on our smartphones and what we see on our TV, the logic that dictates that TV is the flagship advertising media begins to disintegrate.
The rise of streaming services like Netflix and Amazon Video also means that there are already strong competitors for this nascent market. Although based on Facebook’s performance over recent years, the company is healthy enough to rival any of them.
Facebook is up 21% already this year
SOURCE: Yahoo Finance
As noted previously, Facebook’s ‘continue watching’ feature is in its test phase. That means it may never make it into newsfeeds around the globe. But, following years of growth in mobile advertising, and the company’s recent experimentation with mid-video advertising, it’s clearly part of a wider strategy to become the next big online advertising company.
Dominion holds Facebook in its Global Trends Ecommerce Fund.
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