Facebook said it would split the revenue from the ads, with 55 percent going to the video creator whose content the ad was played around and 45 percent remaining with the social network.
"We're running a new suggested videos test, which helps people discover more videos similar to the ones they enjoy. Within suggested videos, we are running a monetisation test where we will show feed-style video ads and share revenue with a group of media companies and video creators," a Facebook spokesperson said in a statement.
Putting a structure in place to monetize videos gives content creators an incentive to produce items suited for Facebook. The move is a big challenge to YouTube, which has dominated the video ad market through its ability to create major stars with big followings on social media.
The Facebook ads will play intermittently, meaning that you might only see one advertisement for every three videos you watched. In that case, the 55 percent would be split with the three video creators around which the ad was played, depending on how long you watched their videos for, according to technology news provider Re/code.