Facebook Inc (NASDAQ:FB) is not relenting on its push to rival Google Inc (NASDAQ:GOOGL)’s dominance on video ads. Anything that the search giant can do, the giant social network is promising to do it much better. However, speaking on CNBC, SunTrust Robinson Humphrey managing director, Robert Peck, raised concern with the way Facebook counts video views compared to Google.
The unique user experience on YouTube is what makes it come on top on video ads as opposed to Facebook Inc (NASDAQ:FB). The quality of views also remains unmatched and one of the reasons why YouTube has been successful on the monetization front.
Peck is taking issue with the fact that People go to YouTube to search for videos unlike in Facebook where users view all sorts of videos that appear on their News Feeds.
“When they count 4 billion views, right, and that constitutes having to go by a video, and it plays there for two to three seconds. That counts as a view. While YouTube is more long form content you are actually engaging you are clicking one video. You are discovering content that way,” said Mr. Peck.
More than $80 billion in TV ad dollar spending is poised to find its way online as brands look for unique ways of reaching millions if not billions of people through advertising. The amount of revenue that Google Inc (NASDAQ:GOOGL) and Facebook generate from video ads will come down to how well they convince brands of the quality of views on offer.
Facebook Inc (NASDAQ:FB) has seen the number of video views on its platform increase by four times over the past year. The quality of these views remains a big concern for many advertisers many of whom have for years relied on Google Inc (NASDAQ:GOOGL) for video advertising.
Advertisers are reportedly willing to place their videos against other long competing videos instead of having to compete against individual videos posted on Facebook. The quality of the videos remains the main attraction feature, according to Peck.
“If you talk to advertisers they will tell you they want as much premium content as they can find possibly on the net. They can’t find enough of it. They are looking for long form content they can put their brand against that is quality. They don’t mind having their brand against,” said Mr. Peck.
Google Inc (NASDAQ:GOOGL)’s YouTube generates about $4 billion an ads revenue with Facebook Inc (NASDAQ:FB) expected to generate $1 billion as its growth rate explodes. The growth rate remains strong for Facebook compared to YouTube.
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