Facebook is testing mid-roll ads on Live videos (FB)

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Facebook is experimenting with mid-roll video ads in live video broadcasts made by its top publishing partners, Ad Age reports. 

Even though these ad formats are currently in a trial stage, this development provides insight into Facebook’s imminent plans for monetizing Live – a question that has occupied publishers for months. And while these ads will eventually unlock new ad revenues opportunities on the platform, Facebook still has some final kinks to work out before advertisers jump fully on board.

The current iteration of live video ads work like this: Ads can appear five minutes into a broadcast, and last up to 15 seconds. They will be sourced from the pool of promoted video campaigns already running on Facebook, though brands can also opt out of showing these ads in live broadcasts. Meanwhile, publishers are able to choose between different categories of advertisers that they want to run in their channels, and are also able to turn off ads for specific broadcasts should they want. 

Introducing live video ads opens up new inventory for Facebook. This is reportedly the first time that Facebook has ever served ads within videos on its platform, and is a timely addition given that the company is beginning to max out on its load (or the number of ads it can show to users), as revealed in its latest quarterly earnings. 

On top of this, live video ads will have several implications for Facebook’s business:

• It will encourage more creators to broadcast live. While Facebook does not currently have a revenue-share scheme for live video ads, opening one up in the future seems inevitable. The company is already paying a select group of media companies and personalities to produce live videos, and creating an additional financial incentive will lure an even wider range of creators to the platform. 
• It will also attract more advertisers to the platform. Facebook's current video ad offerings include in-feed video ads in the News Feed, and ads that run in between suggested videos. Aside from these, live video ads could be especially attractive to advertisers, especially since live video provides audiences who are engaged with the content in real-time. 

However, some advertisers hold reservations about Facebook Live video ads. There is reportedly very little visibility into how these ads perform, as well as a lack of control for advertisers over where they appear. One scenario that advertisers are keen to avoid is for their ads run against a broadcast of a sensitive or controversial event.

Furthermore, live video has yet to reach a critical mass on Facebook, and publishers are still searching for a winning formula to consistently wheel in large audiences. As Facebook addresses these issues, live will gradually evolve into a meaningful advertising channel for brands.

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