Facebook Inc (NASDAQ:FB), committed to provide best communal experience to users connected through the network, is advancing its efforts by allowing publishers to keep all the revenue from certain advertisements.
According to the Wall Street Journal, the company will allow publishers to keep all the revenue for ads they sell in order to convince them to distribute content via the social network. Apparently, the company is willing to sacrifice advertising revenue to provide news to readers more quickly. The company has taken that step in order to improve the news reading experience for users, particularly for those who got frustrated due to slow loadings on mobile devices. Another reason for which the company is giving up some of its revenue is that it expects the faster loading content will motivate users to spend more time on its network. For that purpose, the company was engaged in talks with major publishers for at least the last several months to convince them for hosting their content.
The cost to publishers in lost ad revenue and data could be considerable, although the content hosted directly on Facebook will load faster. However, publishers will be allowed to hold all of the returns from ads they sell against Facebook hosted content, according to the Journal referring people having knowledge of the matter. The company will hold almost 30% of revenue for ads it sells. On average, big Web publishers obtain almost 60% of their traffic via referrals from Facebook.
The company’s initiative, dubbed “Instant Articles,” contains hosting news and videos from the New York Times, BuzzFeed, National Geographic and other publishers as early as this month. The company will be benefited through the plan because 48% of people read news about politics and government on Facebook according to a survey by the Pew Research Center last year.
Facebook Inc (NASDAQ:FB)’s stock on 01 May traded at beginning with a price of $79.20 and when day-trade ended the stock finally moved up 0.28% to end at $78.99. Facebook Inc (NASDAQ:FB)’s showed weekly performance of -3.12%.