Facebook wants more video ads in people’s newsfeeds, and it is doing that by acquiring QuickFire Networks for its video capabilities. Video is the preference for many because it requires less concentration and is often more entertaining. This is also an element that is shared more often, so it makes sense for the social media giant to focus on it.
The main aim is for videos to reach Facebook users more efficiently. Especially important is the ability to have more people share them throughout the day. The company believes that acquiring a video technology firm will help to do that.
San Diego-based firm QuickFire reduces the bandwidth for online videos with its proprietary technology. The quality is not degraded by doing this, and it means that videos can be streamed more easily over Internet connections. More people are viewing over mobile devices than ever before, so reducing the bandwidth is important. It will also mean that the site as a whole can run more smoothly.
There are reportedly over one billion video views each day on Facebook. The servers could become overloaded, and mean viewing videos and using the site could be painfully slow for all.
The Facebook acquisition of QuickFire Networks for its video capabilities is not all good news. Craig Lee, CEO of QuickFire, stated that the business would start to close down. Around 20 people will join the social media giant between Menlo Park and Seattle. QuickFire is a small company, so there is hope that it will not mean too many redundancies, but Lee did not mention any of that.
On Thursday, Facebook announced the acquisition, stating that it was “excited to bring QuickFire Networks on board,” while continuing to offer the best high-quality experience in videos to the social networking users. The terms of the acquisition, including the financial amount, have not yet been shared.
The social media giant needs to do something if it wants to compete in video ads with Google. At the moment, YouTube is the most successful video site out there, and that includes for video advertisements. The quality of the videos is a major selling point for businesses and sole-traders.
Facebook did confirm that the number of videos posted to the site has increase by 75 percent around the world. Other reports state that the use over the last 12 months more than tripled. This includes videos shared for personal use and those from advertisers. It is clearly a market to get into, and now is better than later. Advertisers have certainly pushed for more videos. In 2013, the tech company started with automatically playing videos in a newsfeed, and advertisers want to take it further, as it becomes a successful option for them.
Director of Product and the person in charge of video for Facebook, Fidji Simo, already introduced tools to allow users to check the analytics of their video promotions. Now she is working on better targeting to make sure the videos get in front of the right sets of eyes. EMarketer Inc. believes that this effort will help the company see a 30 percent increase in revenue to $7.8 billion in 2015 due to the market. With this in mind, it makes sense for Facebook to acquire QuickFire Networks to improve video quality.
Opinion by Alexandria Ingham