How Facebook Plans to Make Money on Messenger

Facebook Messenger has already become a new revolutionizing way for the companies to communicate their business through its private messages. Just take a scenario a person buys a bag of chips and happens to find all broken and he just uses the Facebook Messenger private chat service to express his displeasure. Within six months of Messenger business features launch a large number of businesses had started utilizing this platform to engage with their customers and provide them with quick and active customer services.

Facebook’s head of ads and Pages executive, Andrew Bosworth has revealed the company’s intention to monetize the private chats for better returns. It was expected that sooner or later Messenger will help the Facebook in generating some valuable income and it has some incredible ideas to test out.

Facebook is trying some new ideas

Facebook for long had tried kept it away from any revenue generation model and focused on providing an exciting and commendable platform for social networking. But at last it has to monetize its platform in order to generate some revenue no for its own benefit but also for the investors. Now it is planning to make some money on the Messenger, which is tricky, but Facebook has some ideas to try out. Bosworth has hinted about few ideas, which can help business in driving by bringing in repeat customers, or offering them discounts over the Messenger.

Facebook to integrate M in Messenger
 
Earlier this month Facebook has unveiled its M, which is essentially an artificial intelligence assistant for the users. A number of companies are using Facebook to communicate with their customers and offer fast and quick resolution to their problems in a more interactive fashion. M can help a lot in automating the process of dealing with numerous customers on the social media platform. It should be noted that M happens to be more refined and robust artificial digital assistant who helps people in performing wide number minor to tasks like making restaurant reservation to ordering flowers.

More features can be integrated into Messenger

The digital assistant M makes it possible to add more core features to the Messenger, which will help in businesses in a productive manner. Click-to-message ad features are being testing out by the companies on the Message to assess its potential. It works in a simplistic manner whenever a user clicks on any one of these ads then it helps in launching a private Messenger conversation with that particular business. More hardcore features like payments and customer care services via Messenger are also possible. It is worth noting that Messenger service is utilized by more than 700 million worldwide each month.


Bosworth even said there is possibility of virtual reality integrating in future, as Facebook own the Occulis Rift, which is now making come riveting VR headsets for the consumers. Virtual Reality experience is also a great avenue to bring ads as human life does include ads. Having ads in the virtual sphere will be an exciting and remarkable in itself.

Facebook’s New Video Ad Feature Could Worry Google

These days Facebook is testing its new video advertising feature, which can be big challenge for the dominance of YouTube in the market of digital video advertising. On this project Facebook is working with selected media companies and video creators such as; Funny or Die and NBA.

It is expected that soon Facebook users will see a new section in their newsfeed known as "Suggested Videos”. And whenever users will click on the video, so pop-up will appear with recommended videos and scrolling stream, however; all the recommended videos will be the outcome of previous videos, which you may will watch in your newsfeed.

According to Facebook officials, “We are planning to split our revenue from video advertising as; 45 per cent will go to our social network and remaining 55 per will cent will go with video creator” (owner of content advertisement). As per the statement of a Facebook spokesperson, “Currently, we are running the test process for new video advertising feature, as it will help the users to discover more videos with similar choices. We are running a monetization test in suggested videos where we will show video advertisement in feed-style and share revenue with some of the media companies and video creators”. Currently, project is being tested for the people who are suing an iPhone in America.

Big challenge for Google: 

Currently Google’s YouTube is dominating on the digital video advertising market, but in future, Facebook’s new video advertising feature could be big challenge for Google because this social networking site has great number of followers. According to Facebook strategy, users will see only one advertisement for three videos. And in that particular case, 55 per cent revenue will split between three video creators and it will depend that for how much time you have watched their videos. According to tech experts, Facebook will focus on the news-driven shares as core strength, however; YouTube has strong search engine and channel based strategy.

However; its well known fact that YouTube has helped many stars to get dedicated number of followers and to watch latest clips you can easily switch to YouTube stars' page, but Facebook doesn’t have these kinds of pages.

Game changing payout structure: 

According to Richard Broughton, Research director of Ampere Analysis, “It’s true that Facbook’s pay-out structure is bit complex, but it’s good enough to attract content partners”. The more he added that Facebook is offering incentive for the content creators, if they will put their content on this social networking site and because of this content creators will create more content for this platform. It is expected that in 2015, video views will exceed two trillion, which is two-thirds of YouTube’s total views for same period, as per Ampere Analysis, which emphasis the social media advertisements.

From past two years Facebook is making big moves and now Facebook is testing on the video experience. Now Facebook is planning to show more content including auto-playing videos in newsfeed as it has one billion daily views in September 2014 and four billion in April 2015.