Facebook’s ongoing video push is proving to be very profitable for its marketing partner. Bidalgo, one of Facebook’s marketing partner, aims to triple its sales in 2015 as its new technology of making customized online video ads is gaining immensely from Facebook’s rising share in the video market, says a report from Reuters.
Bidalgo targeting big
Generally, advertisers prefer to make only one or two versions of a video as they are high-priced, and this where Bidalgo helps. Talking about the company’s technology ADaptation, Bidalgo’s executive said the technology helps to turn one video into many versions. This helps so that intended audiences only view those images that attract them the most. For instance, a German flag might be visible to a German audience, whereas a French user sees their country’s flag, says the report.
For the coming year, Bidalgo expects this product to generate half of the firm’s revenue, while “down the line much more than that,” the Israeli firm said. This year, Bidalgo, which has 40 employees, is targeting $100 million in sales. Its client includes big names such as 888 Holdings and Zynga.
According to Bidalgo’s Israeli operations general manager, Peleg Israeli, a change in user preference from static images to video ads has helped Facebook to emerge as the video market leader.
Bidalgo could be a good acquisition for Facebook?
Facebook will gain an advantage over its competitor YouTube with these automated videos as it helps to track users “in the most accurate way,” the executive said. In the short-form video, Facebook is becoming a threat to Google, who remains the leader of the long-form video format. Nearly 4 billion videos are viewed on Facebook daily, of which more than 75% are viewed on mobile devices, according to the social networker.
Eleni Marouli, IHS senior advertising analyst, notes video is next big project for Facebook as it will help the company to snatch away more advertising from TV.
“Dynamic creative ads are a new, experimental way of providing video advertising,” the analyst said, adding Facebook should either acquire or enter into partnership with the companies, who possess such technology. Eleni notes Bidalgo’s expertise to create dynamic ads based on gender or location is a “great asset.”
eMarketer, a market research firm, expects global mobile advertising spending to exceed $100 billion in 2016, which is an increase of 430% from 2013.