19 Jun

Publishers Eager to Post Content on Facebook’s ‘Instant Articles’

WRITTEN BY Matilda James

More and more publishers want a slice of Facebook’s Instant Articles pie

Facebook (FB) launched its Instant Articles feature last month and ever since, publishers have been contemplating its pros and cons.

In a recent article published in the Wall Street Journal, Jack Marshall and Deepa Seetharamen reported on the ongoing buzz surrounding the launch of this product and how it has attracted the interest of the publishing world. Since the launch of Instant Articles on May 13, says the report, “Publishers Expect More Instant Articles Later This Month,” not much has been posted on Facebook’s platform. This has raised concerns among the initial five publishers that did a test run with the feature. These include the New York Times, NBC News, and BuzzFeed—all of which are reportedly eager to adopt this product and benefit from it.

Publishers Eager to Post Content on Facebook’s ‘Instant Articles’

Apparently, Facebook intends to eventually hand over the controls to publishers, so that they can post content on Instant Articles whenever they want to.

Premium content: A key revenue driver

Publishers understand the importance of premium content, which explains their interest in partnering with Facebook. Besides, the instant article feature is a win-win for publishers since Facebook is letting them share the ad revenue.

Apple (AAPL) introduced a similar feature recently at the Worldwide Developers Conference, when it launched its News app. For more on this subject, read Apple Takes a Cue from Facebook by Launching Its News App at WWDC.

According to a report from eMarketer, and as the chart above shows, worldwide mobile Internet ad spending could grow from $43 billion in 2014 to $196 billion in 2019, at a compound annual growth rate of 35%.

The mobile advertising market is witnessing growing competition. Like Facebook, competitors including Twitter (TWTR), Google (GOOG), and Yahoo! (YHOO) are also leveraging the growth potential of the mobile Internet ad market.

Last year, Facebook launched its App Links technology, which is used to link mobile apps with ads. Twitter, too, released a mobile app install ads program. These are the ads that appear in Twitter’s news feed on mobile.

To gain portfolio exposure to Facebook, you could invest in the PowerShares QQQ Trust, Series 1 (QQQ). QQQ has 3.6% exposure to FB.

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