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Facebook launches dynamic advertising for video streaming platforms

7 April 2021
2 min.
Facebook launches dynamic advertising for video streaming platforms

New advertising tool

Facebook shares rose on Monday as the company launched a new advertising tool for streaming video platforms such as Netflix, Disney and others. Facebook's algorithms will offer social network users targeted content from these platforms, which should improve ad conversions and increase the number of subscriptions.

Facebook (FB) shares hit a new high of $308.9, up 3.43% on Monday amid news of the launch of another dynamic advertising tool.

While Facebook's new advertising tool targets a fairly limited number of advertisers among global streaming video companies, the audience of potential viewers for their platforms is huge.

Thus, Facebook can take advantage of the growing worldwide popularity of streaming services such as Netflix (NFLX), Disney (DIS), Google's YouTube (GOOGL, GOOG), Amazon Prime Video (AMZN) and others. In addition, in addition to international companies, there are often national streaming video services in each country. With the spread of the Internet, people are increasingly abandoning satellite and cable television in favour of subscriptions to such services.

Given the diverse content of these streaming services thousands of different movies, TV series and shows targeting advertising to potential customers can be a challenge.

Thanks to artificial intelligence algorithms, Facebook is able to offer dynamic ads to its social network users, specifically content that will potentially interest them. Facebook's algorithms will assess users' preferences and manifested interests, such as which pages or groups they choose, which actors and stars they are interested in, in order to offer targeted ads for the streaming service with relevant content.

Also, Facebook pointed to a recent Kantar study that found 64% of users of streaming services make a subscription decision based on a wide range of content.

"We want to help streaming platforms increase sign-ups and help audiences find the movies and TV shows they want to see", Facebook said.

The global social media leader said this new advertising tool was tested by Brazilian subscription video service Globoplay, which has seen good results in promoting its content to Facebook audiences.

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