Seeking Alpha

Facebook reportedly planning TV-style commericals

  • Facebook (FB +6.8%) plans to sell 15 second long TV-type ads on its site for as much as $2.5M per day, reports Bloomberg.
  • Back of the envelope: $2.5M times 365 days equals nearly $1B per year (company earned about $330M on revenue of $1.8B last quarter).
  • Already having a big day in continuation of a massive post-earnings move, the stock is within pennies of its $38 IPO price.
  • Previous: Facebook launches mobile game publishing.
Comments (4)
  • Who is going to sit through these ads? People will eventually get saturated with screen and video ads. Was this news leaked early...and hence the continued rise in the stock all day?
    30 Jul 2013, 03:56 PM Reply Like
  • A good move by Facebook.
    Many companies don't even know HOW to buy ads on Facebook. Plus, I have never seen TV ads pushing Adsense or any others. The decade old Google ad monopoly is starting to crumble.

     

    Sounds like the online ad wars are really heating up!
    30 Jul 2013, 03:59 PM Reply Like
  • Yup and on top of that TV is a horrible space with extremely low margins. FB needs to stick to social not TV.
    30 Jul 2013, 04:22 PM Reply Like
  • Yet another reason for me to not be on Facebook.

     

    So, how is revenue supposed to increase?
    31 Jul 2013, 05:37 AM Reply Like
DJIA (DIA) S&P 500 (SPY)