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Facebook Inc. (FB) Seals NFL Video Clips Deal With Ads From Verizon Communications Inc. (VZ)

Facebook Inc. (NASDAQ:FB) video business received an uplift after the giant social network inked an agreement with the NFL for the airing of short video clips all sponsored by Verizon Communications Inc. (NYSE:VZ). Despite digital advertising gaining momentum, Fox Business reports that TV networks might still have the upper hand in terms of advertising.

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TV advertising currently stands at $70 billion compared to digital advertising that continues to gain momentum at $50 billion. Despite Qantas Media affirming that TV advertising remains ideal for advertising among marketers, Moat Co-Founder CEO, Jonah Goodhart , maintains that digital advertising continues to grow faster than earlier thought.

“Digital is continuing to grow really fast; the Qantas report that came out was sought of an interesting one. They analyze one part of digital, desktop display meaning ads that show on your PC. We all use mobile phone a lot; turns out they excluded mobile from this analysis that’s a problem,” said Mr. Goodhart.

Facebook Inc. (NASDAQ:FB) sealing an agreement for NFL videos is sure to have a positive impact on its advertising business that has been under immense pressure with the entry of more players into the space. Delivering to personalized audience could go a long way in opening a new lucrative revenue stream for Facebook.

The signed deal will see NFL game highlights as well as studio analysis and fantasy updates showing up on Facebook Inc. (NASDAQ:FB) user’s timelines as well as Verizon Communications Inc. (NYSE:VZ).  The sponsorship deal will mainly be used to evaluate how people and marketers respond to the various kind of co-branded video content on the giant social network.

The pact agreement between Facebook Inc. (NASDAQ:FB) and NFL is poised to work based on the fact that the network has a giant audience that is sure to be happy to watch video that is timely and tailored.   Marketers are slowly shifting their attention to digital advertising as one of the most effective ways of tapping into audiences that are on the go instead of having to rely on static TV networks.

“We really live in a digital world this idea of watching TV or being online, I think is changing. We live our lives in a digital way whether that is connected to TV whether that is on our phones,” said Mr. Goodhart.


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