Facebook's upcoming video ads may run advertisers $1 million daily

By on April 16, 2013, 4:30 PM

In an effort to better capitalize on its billion-plus members, Facebook may be looking to roll out its own video-based ad service as soon as this summer, a report by Ad Age indicates. Placing a video ad on Facebook won't come cheaply though, claim three executives briefed by Facebook on the upcoming service. The social network is aiming for the sky on this one, charging up to one million dollars for a relatively short 15 second spot.

It appears Facebook is currently experimenting with four daily advertising slots, meaning the service could generate about four million dollars in revenue per day. Also, it seems the company intends to create a system where users won't see the same video ads more than once per day while simultaneously limiting the total delivery of ads to three per user per day.

The format of Facebook's video ads remains unclear, although previous rumors suggested the 15 second ads will play automatically and take up a portion of the screen larger than just the "News Feed" area. Autoplay ads may prove controversial with its users, although Facebook may opt to have those ads muted by default. It is also unclear how video ads will be delivered on mobile devices, if at all.

Facebook's video ads are expected to have unusually broad, TV commercial-like target audiences. As an example, target demographics for its video advertisements will be: women under 30, women over 30, men under 30 and men over 30. 

Facebook's first advertising slots are slated to open in June and July. 




User Comments: 14

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2 people like this | cliffordcooley cliffordcooley, TechSpot Paladin, said:

I'm glad I will not be seeing them. If TechSpot resorts to using video ads, I will resort to reading elsewhere. Not only do I not want to deal with such trash, I don't have the bandwidth for them.

2 people like this | UnknownSky said:

Wonder how it will fair against Adblock

1 person liked this | Burty117 Burty117, TechSpot Chancellor, said:

I was thinking the same thing, Adblock has done me no wrong, only site I allow through it is techspot cos I come here all the time

davislane1 davislane1 said:

And some people wondered why I would want to ditch Facebook when I did. Online video ads are the bastard spawn of Satan.

Littleczr Littleczr said:

I don't mind ads at all as long as it is stuff im interested in. They have my info so it should not be a problem. I don't want to see laundry detergent ads, but I am interested in upcoming movies, video games, computer accesories etc.

JC713 JC713 said:

Video ads are what ruin YouTube. Good thing I have Adblock. I will probably deactivate my Facebook if these come to the mobile app.

Tygerstrike said:

The great part for me is I will never see the ads!!! The bad part is that ppl on FB will. Its a sad state of affairs that the site you go to to connect with ppl you know is going to shove 3 ads a day down the consumers gullet. I have to agree with Littleczr on this one. Taylor the ads displayed to the individual customer. No guy wants to see a laundry detergent ad unless there is a hot chick in it. Not trying to be sexist, just acurate. Im 100% sure that no only do they know what you "like" but they use that information daily to streamline their own service. Advertisers need to understand that we are bombarded with ads EVERYWHERE!!! Yes it may get your product into the consumers view, but bad placement of such ads can and does have the reverse effect. Ppl would rather shove ground glass into their own eyes then ever buy the product on a badly placed ad. But since this is FaceBooks mistake, I will simply sit back and watch as FB becomes a sinking ship. Its going to be MySpace all over again. I wonder where ppl will flock once they abandon FB. Or will we see the begining of the death of social media????

TS-56336 TS-56336 said:

Ads that are intrusive are going to absolutely murder the facebook user experience.

CommonSense said:

Wow I hear a lot of whining and complaining from people who use a service and have to pay absolutely nothing for it .... stop crying and if you don't like it stop using Facebook .... I mean seriously this is a website that hosts its services to billions of people .... think they should do it for free?! ... people whining about ads are ridiculous ... that's how they make their money you tards get used to it.

fimbles fimbles said:

Happy to watch ads as long as the content after them is free.

Ravik Ravik said:

"Free" is simply a business model. Websites that adopt the "free" model still need to cover their expenses somehow. Facebook does it by doing what it does best...by being Facebook (interpret that however you will). Wikipedia does it by asking for donations from users. IMDb.com does it by having ads and pro services on the side. eBay does it by taking a cut of the sales. Games do it by having in-game sales, paid DLC, and embedded advertising.

So "free" doesn't necessarily mean that there won't be some form of revenue drivers embedded into the platform...it just means that it costs the consumer nothing up-front to begin using the service. The only type of organization that provides goods and services while operating on less money than it brings in...is a government!

Cheers!

Guest said:

This is so ridiculous, that I even have nothing to say...

These guys explained how ridiculous it is pretty well though:

[video embed]

Peter Lawson Peter Lawson said:

Hi,

the image you have used you do not have permission for, I designed this 7 months ago for the company I work for, in future please give credit or at least email asking for permission.

Thank you

cliffordcooley cliffordcooley, TechSpot Paladin, said:

Hi,

the image you have used you do not have permission for, I designed this 7 months ago for the company I work for, in future please give credit or at least email asking for permission.

Thank you

What are you talking about? Are you talking about the image in the article that anyone could make?

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