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Facebook Partners Media Houses, Launches Instant Articles - Analyst Blog

Facebook, Inc.FB has launched Instant Articles to allow media outlets like The New York Times Company NYT and others to publish their stories directly on its platform.

Apart from the New York Times, eight other news publishers like BuzzFeed, National Geographic, NBC, The Atlantic, The Guardian, BBC News, Spiegel and Bild will be a part of this novel initiative. Instant Articles was launched yesterday on Facebook app for iPhone.

Instant Articles from Facebook not only loads significantly faster than other mobile media but also has a host of other useful features. Readers will not only be able to have a rich and hassle-free experience of viewing photos or auto-play videos with Instant Articles but will have access to interactive maps and audio captions. In fact, Facebook has designed the product in a way that users can like or comment on specific parts of the article.

On the other hand, it is also a boon for publishers who can not only build their reader base but also keep all of the ad revenue if they so choose. (Publishers can earn revenues by placing ads in their articles or they can allow Facebook to place ads and share the returns with it). They can also track traffic data and get important insights with analytical tools from comScore to enhance their branding strategy. This initiative will allow media outlets to tap the vast user base of Facebook while leading to improved customer experience and engagement levels.

Additionally, Instant Articles will allow news publishing companies to take journalism to another level, given the tools for improved visualization and increased interaction that Facebook is now providing. The power of social media is tremendous when it comes to spreading the word and this is the feature that is also attracting publishers to Twitter Inc. TWTR , which has already teamed up with various publishers for real-time updates on the micro-blogging site.

This is yet another move by the social media giant to increase engagement on its platform.While it is currently offering an option to publishers to keep 100% of the ad revenue, it will be interesting to see if this arrangement continues once the publishers' dependence increases.

Previously, Facebook undertook a number of initiatives including the launch of new products and tools, the acquisition of smaller firms and collaborations with tech companies like International Business Machines Corporation IBM in order to develop more solutions for enhancing advertisers' experience.

According to research firm, eMarketer, social network ad spending is expected to reach $35.98 billion by 2017 that is 16% of global digital ad spending. All these initiatives position this Zacks Rank #2 (Buy) company well to gain from this booming market.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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