Facebook Inc (NASDAQ:FB) is taking its rivalry in the ads business to another level, this time targeting publishers with its new Facebook Instant Articles project. Facebook’s new play should have the biggest impact on Google Inc (NASDAQ:GOOGL), which generates 20% of its total revenues from ad inventory hosted by partner sites. The giant social network has already partnered with the likes of NBC News feed, Buzzfeed, and the New York Times as it looks to disrupt ad spend on Google.
Publishers shifting their allegiance to Facebook Inc (NASDAQ:FB) should be a point of concern for Google Inc (NASDAQ:GOOGL) as AdSense has acted as a key source of revenue for years. However, Facebook still has a long way to go in its bid to convince some publishers to shift their allegiance to a product that has not yet been proved in terms of returns.
Facebook wants to become a news center, an area that until now has been dominated by Twitter Inc (NYSE:TWTR) and Google Inc (NASDAQ:GOOGL). Transforming from being a platform for communicating, to a platform where people can get access to both local and world news is Facebook Inc (NASDAQ:FB)’s next big play. The network is already promising publishers an opportunity to make their content stand out on the platform as they move to gain access to more than 1.4 billion monthly active users.
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Facebook will not in any way interfere with how publishers want to make their content appear on the platform allowing the brands to retain their brand identity. Publishers had initially raised concerns that by hosting their content on the network their ads business would be affected.
Facebook Inc (NASDAQ:FB) has quashed this concerns, affirming that partner sites will be allowed to keep 100% of ads revenue they generate from their inventory. The giant social network will also supply the sites with ads inventory in case they need any. It will keep 30% of any revenues generated from the same.
Potential big win for Facebook
A cloud of concern still fills the air with how Facebook Instant articles will pan out in the long term. Constant changes in the platform’s algorithm remain a point of concern for some of the publishers who fear their content reach may be limited. Facebook Inc (NASDAQ:FB) becoming the only online media outlet in the long term also poses a greater risk to editors who will have to fight it out to air their work on one platform.
Despite the concern, it is a big win for Facebook Inc (NASDAQ:FB) as it moves to make people spend more time on its app where engagement levels stand to improve with more content from publishers.