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Friday, Sep 6
Facebook reportedly delays video ad launch, shares make new highs
- Three sources tell AdAge Facebook (FB +2.9%) has delayed its video ad launch from an original October ETA, and hasn't provided a new launch date.
- Worries about "the impact on user experience," already reported to be a major concern for Mark Zuckerberg, are said to be responsible for the holdup. However, sources also note there's some wariness among advertisers about $1M purchase commitments and production costs.
- With Facebook reportedly looking to charge $2M/day for video ads that reach its entire user base (options for targeting specific demographics are also believed to exist), the ads could prove a big growth driver when they finally launch, even if (as reported) users will only see one per day.
- AdAge's report comes on a day when Facebook jumped to fresh 52-week highs, thanks in part to a very bullish SunTrust note.