Facebook Watch: the latest player to grapple for the content throne

  • Voices
  • August 16, 2017
  • Anthony Gardiner
Facebook Watch: the latest player to grapple for the content throne

Just when you thought the battle of the five kings was all but done and everyone had claimed their own Kingdom, it has reared to life. No, not Game of Thrones. The battle for your video-watching eyeballs being waged among Netflix, Amazon, Google, Apple (recently), and in the very near future… Facebook.

Facebook last week announced it is launching Facebook Watch. A thoroughly underwhelming selection of content beamed onto your device of choice via a new tab. This new tab has helpful sections aimed at reducing the amount of time you scroll, scroll, endlessly goddam scroll through Netflix when your last binge show has finished.

Unlike Netflix, however, you will not need to pay a monthly subscription. And (initially at least) you won’t get to see anything you actually want to watch. The “Nas Daily” show they have touted is not about QBC’s finest, Nasty Nas Escobar.

So are we excited? Are we worried? Will the other Four Kings care? Yes, no, and they should. Netflix is currently in a $20 Billion debt and liabilities hole. That is worse than Pandora and SoundCloud combined. That is iHeartRadio levels of terrible.

Standing by itself, a bunch of shitty content streamed through a social network won’t blow anyone’s socks off. But when you add in a few of the other layers that Facebook has at its disposal, things get interesting.

Google aside, the other Kings of Content all make money from subscriptions. Google, via YouTube, makes a handful of pennies from pre-rolls. It also doesn’t waste (much) time trying to make original content. It is happy to let other creators take that risk, and any money the content might make from advertising revenue is split via some extremely secret algorithm with said creator.

This will be Facebook’s model and has already proved very profitable for the company when targeted ads are thrown in the amid all the photos of my cat and dog that I post. However, Facebook has already been rolling out that annoying “Your video will resume in X seconds” ad placement inside Newsfeed videos. If this was placed in the middle of a video I actually wanted to see, I would stick around. And if the video was a 30-minute episode of my latest binge, I would expect to have several, of these ads thrown in every 8-10 minutes, the same way terrestrial TV does now.

Facebook’s programmatic advertising within content I want to watch will be a very effective and highly measurable way for advertisers to reach eyeballs – all without Facebook having to pay for the content it is distributing.

When you add the social layer onto this, which will allow all of us humans (who have our avocados, clothes, books etc delivered and try to avoid leaving the house) the opportunity to easily banter along with friends or internet strangers about the show we are enjoying ‘apartogether’. Just like Twitch. Or Justin.TV if you ever streamed Family Guy on that service.

But hold on. There's More!

As part of the rollout of Facebook Watch, The Zuck has said that all advertising revenue will be split with “content creators” 55/45. Personally, I think this is a little low. Apple only keeps 30 perent of music (content) revenue from iTunes. That is the benchmark.

Regardless of the level of the split, content creators – or owners/rights holders, a better term -  will soon be able upload their content for distribution to Facebook’s audience, and take in a revenue share of the advertising. Why wouldn’t you? Even if you were a baller creator such as… The Project.

Let’s all pretend for a minute that TV ratings are actually valid so we can run some figures. Okay, let’s not. This kind of model doesn’t actually need the numbers to prove its value.

Let’s imagine that we know what age, demographic, life stage… and a hundred other things about every single individual viewer tuned into The Project, and that we can target advertising absolutely specifically to each and every human watching, based on all of this information we know about them.

Suddenly me and my mum are having different ads served to us as we watch the same program in different locations – all the while old mate Barb is calling me a woolly headed lefty via the chat function. Classic mum banter. I get ads for beer, holidays I can’t afford, and Wu Tang Clan cufflinks while she gets ads for…whatever it is a 58-year-old white woman likes. Soft cheeses? I don’t know.

The Project doesn’t even need to sell these ads themselves (soz, sales department at MediaWorks). Or try to tailor their stories to hit a particularly sweet demographic spot. If the eyeballs that tick the advertisers’ boxes are watching, Facebook’s programmatic system will do the rest – and give the owners of The Project a 45 percent cut.

TV advertisers not only still get their desired reach and frequency, but they can set the exact numbers they want to hit for the specific demographics they are chasing. This targeting will make the ads more expensive, but far more accurate and measurable.

So long as the bid price for these far more relevant, accurate, and measurable ads is more than 100/45 x the current rate card value (lol – rate card)) of ads being sold via terrestrial TV, then the people who own The Project are better off not only distributing via Facebook, but encouraging as many of their viewers as possible to jump over to that platform.

As to whether or not the content owners actually do this…time will tell. Is a 45 percent cut enough for professional content creators to see the value? Will they allow non-exclusivity across platforms, allowing the subscription services to show the same shows? Will the suggestion algorithms make for a shit experience and more endless scrolling? Can I mute my mum’s social commentary?

I don’t know. But I am glad to see that the future won’t be entirely focused around me having eleventy different subscriptions just so I can watch Game of Thrones AND Vikings AND American Gods AND and Black Mirror. And the Project. Hopefully.

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

#suffrage125: How media and brands are celebrating New Zealand's historic move

  • Advertising
  • September 19, 2018
  • StopPress Team
#suffrage125: How media and brands are celebrating New Zealand's historic move

Today is a proud day for New Zealand as we celebrate 125 years of women’s suffrage in New Zealand. StopPress looked around to see what media and brands in Aotearoa did to mark the occasion.

Read more

Changing faces of women in advertising

  • Voices
  • September 19, 2018
  • Georgia Middleton
Changing faces of women in advertising

It’s 2018. That’s 125 years since women in New Zealand have been recognised as equals in the eyes of democracy. But what’s the story of equality in advertising? It doesn’t take much research to find articles about the changing faces of women in advertising – and yes, things are changing. But the casual sexism, the call-outs and the cover-ups have sparked a different kind of debate. Is misogynistic advertising a thing of the past, or do seeds of it still exist? To answer that, I’ve looked at different portrayals of women to see how things were then…and now.

Read more

Sharks and lightning: expect the unexpected in LifeDirect's new campaign

  • Advertising
  • September 18, 2018
  • Georgina Harris
Sharks and lightning: expect the unexpected in LifeDirect's new campaign

Following the sad demise of mascot Simon the sloth, LifeDirect by Trade Me has gone for the humourously unexpected in its newest brand campaign by Y&R.

Read more

Social scoreboard

Zavy and StopPress have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

topics
Follow The Money
Follow The Money
Follow the money. It’s an axiom that journalists have believed in for years and a ...
Regional Rundown
Regional Rundown
StopPress takes a trip down the country to see who the audiences and agencies are ...
Beyond the Page 2018
Beyond the Page 2018
In conjunction with the MPA, the Beyond the Page series shows how some of the ...
Insight Creative
Insight Creative
Insight Creative specialises in shaping business stories out the core insights that often lie under ...
Beneath the Surface
Beneath the Surface
In this series, brought to you by Microsoft, we talk to a conceptual photographer, illustrator ...
20/20 (tele)vision
20/20 (tele)vision
Media consumption is changing. But by how much?
The Hot List
The Hot List
Our rundown of the hottest shows, brands and creators in New Zealand media. 1. magazine ...
Cannes Lions 2017
Cannes Lions 2017
All the winners, the shortlists and the drama from this year's edition of advertising biggest ...
Merger Mania
Merger Mania
All our stories on the nation's two failed mergers in one place
Bauer Beyond the Page
Bauer Beyond the Page
When it comes to creating branded content, there are few better in the Kiwi market ...
The Indies
The Indies
Over the course of this series of articles, we look at how always-nimble indy agencies ...
AdRoll on automation
AdRoll on automation
Marketing automation is tipped to eventually become the only way advertising is traded in the ...
Game Changers
Game Changers
It’s all about PEOPLE. Join us as we discuss global insights, ideas and innovations from ...
TVNZ-NZ Marketing Awards 2015
TVNZ-NZ Marketing Awards 2015
Celebrating all the winners of the 2015 TVNZ-NZ Marketing Awards.
Future Tense
Future Tense
In a new series, StopPress talks to a range of newsmakers currently trying to shine ...
Beyond the Page
Beyond the Page
In conjunction with the MPA, the Beyond the Page series shows how some of the ...
Up Country
Up Country
In conjunction with News Works, the Up Country series talks with some of New Zealand's ...
Sounding off
Sounding off
As part of a content partnership with MediaWorks, we've asked a few of the company's ...
StopPress Podcasts
StopPress Podcasts
We sit down for a chat with industry leaders to find out what they're up ...

What's your mark of progress? ASB showcases its customers' stories

  • Advertising
  • September 18, 2018
  • StopPress Team
What's your mark of progress? ASB showcases its customers' stories

ASB has launched another round of its business banking campaign with True, and this time it's put the spotlight on its customers, with Pic’s Peanut Butter, Burger Burger, Farmlands and others sharing their business progress.

Read more

Ads of the week: 18 September

  • TVC of the week
  • September 18, 2018
  • StopPress Team
Ads of the week: 18 September

ASB, LifeDirect and Phloe show us how it's done.

Read more
voices

Social enterprise shows how VR can save New Zealand's endangered birds

  • Technology
  • September 18, 2018
  • Elly Strang
Social enterprise shows how VR can save New Zealand's endangered birds

For Conservation Week this week, social enterprise Squawk Squad and virtual reality studio M Theory have joined forces to go into the classroom and get children excited about saving New Zealand’s native birds through VR technology. The experience takes the viewer through a forest journey alongside a robin bird, who encountering friends and predators along the way.

Read more
Follow the money, part three: Where New Zealand's news media is finding pots of funding gold
features

Follow the money, part three: Where New Zealand's news media is finding pots of funding gold

Follow the money. It’s an axiom that journalists have believed in for years and a guiding light when it comes to holding the powerful to account. But that phrase is increasingly pertinent to those who run media businesses. As advertising money flows away from traditional channels towards large tech firms, the old business model of selling space around the news is creaking. And that has led to a range of experiments from publishers and broadcasters hoping to keep the lights on – and to keep shining those lights into dark places. Erin McKenzie dives into the local news media feed and finds plenty of experiments, but no simple answer to the funding conundrum.

NZME secures eight News Media Awards in Australia: News Corp leads winners

  • Awards
  • September 17, 2018
  • StopPress Team
NZME secures eight News Media Awards in Australia: News Corp leads winners

NZME was the most successful New Zealand brand at the News Media Awards in Sydney last week, with News Corp topping the honours taking home 2018 News Brand of the Year.

Read more

Seat appoints DDB to rev up its presence

  • Advertising
  • September 17, 2018
  • StopPress Team
Seat appoints DDB to rev up its presence

After launching in New Zealand last year, Spanish car brand Seat has appointed DDB as its creative agency to grow its presence in the local market. DDB's garage is now home to Volkswagen and Seat.

Read more

Connon Bray: "The debate was misdirected"

  • Voices
  • September 17, 2018
  • Connon Bray
Connon Bray: "The debate was misdirected"

TRA partner Connon Bray weighs in on the Byron Sharp versus Mark Ritson debate, deciding both marketing giants are wrong.

Read more
Digitising New Zealand's SME community: Yellow launches marketing subscription service
Sponsored content

Digitising New Zealand's SME community: Yellow launches marketing subscription service

“It’s not a matter of if, but when,” says Yellow chief marketing officer Bruce Pilbrow on businesses undergoing a digital transformation. For the past 60 years, it’s been serving New Zealanders and their businesses alongside its own transformation and now it’s ready to impart that experience onto SMEs.

Brett Henshaw appointed managing director of Fonterra Brands, New Zealand

  • Advertising
  • September 17, 2018
  • StopPress Team
Brett Henshaw appointed managing director of Fonterra Brands, New Zealand

The Fonterra Co-operative has a new managing director of Fonterra Brands, New Zealand in Brett Henshaw.

Read more

TVNZ-NZ Marketing Awards 2018: Kevin Bowler inducted into Marketing Hall of Fame

  • Awards
  • September 14, 2018
  • StopPress Team
TVNZ-NZ Marketing Awards 2018: Kevin Bowler inducted into Marketing Hall of Fame

The ability to tackle change head-on is a trait most successful people share. And throughout his career, Kevin Bowler has never shied away from a challenge.

Read more

OMD wins SkyCity jackpot

  • Advertising
  • September 14, 2018
  • StopPress Team
OMD wins SkyCity jackpot

OMD has won the SkyCity media account following a competitive pitch, with work commencing immediately.

Read more

Summer's coming: The Warehouse launches refreshed TVCs

  • Advertising
  • September 14, 2018
  • StopPress Team
Summer's coming: The Warehouse launches refreshed TVCs

The Warehouse is taking a refreshed approach to its marketing, with its latest TVC by DDB promoting a new attitude and new goals for its customers.

Read more
Next page
Results for
Topics
Jobs
About

StopPress provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2018 ICG Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise

Contact Vernene Medcalf at +64 21 628 200 to advertise in StopPress.

View Media Kit