SAN DIEGO, CALIF. (TheStreet) -- With adults now spending about a sixth of their daily digital time consuming video, and advertisers allocating larger chunks of their budgets to the format, digital video is clearly on the upswing. No company knows this better than Facebook (FB) , which is the number two destination for video views after Google (GOOG) in the U.S. and reportedly on the prowl for talent to appropriate from its rival.
Facebook is courting top YouTube producers such as Disney-owned (DIS) Maker Studios and looking to introduce a new video ad format before the end of the year, according to The Wall Street Journal. The idea is to convince content creators to go native with Facebook, in lieu of posting YouTube clips, and bite off hundreds of millions of monetizeable video views in the process.
At stake is a digital video ad market expected to balloon to $12.82 billion in the U.S. by 2018, by eMarketer's account.
Must Read: Google, Facebook Battle Over Exploding Online Video Ad Revenue
For Facebook to reach YouTube-like status -- the Google property owns a fifth of video ad revenue (or $1.13 billion) in the US -- the company needs to append pre-, mid-, or post-roll ads to premium videos. Since users personal videos are probably off limits, Facebook needs the Maker Studios of the world to be Team Facebook. In August, Maker Studios was the top YouTube Partner Channel in the U.S. with 45.3 million unique viewers, according to comScore.