We’ve all watched what seems like a million ice bucket challenges, from celebrities to epic fails. In fact Facebook’s newsroom tells us that between June 1 and September 1 this year, 17 million videos of a certain act were watched 10 billion times on Facebook by 440 million different people.
Alan Kohler at Business Spectator wrote a great piece title “Facebook is TV’s ice bucket challenge”
In the article he outlines how the Ice Bucket Challenge is the likely tipping point for video on Facebook.Forbes magazine tried to figure out how much money Facebook made from the ice bucket challenge and didn’t really get anywhere, beyond concluding that it was a lot.
The company now says it is doing a billion video views per day and it starting to make a lot of money from video advertising.If TV executives aren’t having nightmares about this, they should be.
The television industry’s revenue comes from its ability to offer access to just about everybody, as well as to divide them up into broad demographic segments determined by the type of program being shown.
The combination of providing large scale brand advertising and targeted product promotions has obviously been enormously profitable over many years.
Facebook is now being used by more than 80 per cent of the people who use the internet. More importantly, 30 per cent of the time spent on the internet is spent on Facebook; the next highest “time spent” is Google, at 10 per cent.
So Facebook, like TV, has an audience of “just about everybody” and its users spend a lot of time on it, every day, like TV.
But what Facebook offers that TV can’t is absolutely precise targeting – not broad demographics because on the style of program, but ads tailored virtually the individual.
That’s because Facebook knows who each of its 1.3 billion users is, by name, age, sex, job, hobbies, you name it. TV networks only have broad numbers.
On Twitter you can be anonymous, and many users are; on Facebook you are yourself.
Google and YouTube changed everything about media ten years ago, and is Facebook now doing it again? That is yet to be seen. They now have the data about 80% of the internet users and it’s how they use this will be the interesting part.
Google has tried a multiple of times to capture more of your personal information (Orkut, Google+) but so far has yet to gain the traction they need. That being said they do know an awful lot, even if this is inferred:
But it’s not just these two giants playing this game, Netflix, Amazon as well as the TV networks themselves that now open up their back catalogue to catch up TV platforms are all trying to learn who their viewers are and targeting advertising to their desires.
TV advertising have already started to be bought ‘programatically’ and it’s not too hard to imagine that in some way in the near future that your advertising on your TV is actually meant for you and not an audience like you.
In the end they are trying to move with the times and target their audience, it’s the same challenge for all industries. We challenge all companies to “Stop retrofitting yesteryear’s strategies for today’s technologies”