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WSJ: Facebook wants $2M/day for video ads; Zuck tries to strike balance

  • Execs familiar with Facebook's (FB +0.2%) video ad efforts tell the WSJ the company plans to charge $2M/day for ads that reach the company's entire audience of adults aged 18-54. Advertisers can also pay less to target specific age and gender-based demographic groups.
  • Bloomberg previously reported Facebook is looking to charge $1M-$2.5M/day for 15-second video ads, depending on audience reach, and AdAge reported Facebook is thinking of selling 4 daily video ad slots.
  • The WSJ also reports Mark Zuckerberg "set an especially high bar" for Facebook's video ad developer team. Zuck is reportedly intent on having video ads load quickly, and without alienating users or hurting engagement.
  • Ad execs state Facebook's video ads will automatically play without sound, and that a user will have to click/tap on an ad to enable audio.
  • The ads will "appear prominently" in news feeds, and users will be "exposed to one video advertiser per day." They'll be able to see additional ads from an advertiser by swiping right-to-left. Several major brands are reportedly on board.
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Comments (17)
  • Valuentum
    , contributor
    Comments (1331) | Send Message
     
    Slightly fascinating that a business model that works so hard to hide how it generates revenue to users is so successful...
    9 Aug 2013, 03:16 PM Reply Like
  • JMstocks75
    , contributor
    Comments (250) | Send Message
     
    video adds will be the end of facebook, I have never even clicked on an add they are selling now, and never will
    9 Aug 2013, 04:17 PM Reply Like
  • chickensevil
    , contributor
    Comments (703) | Send Message
     
    You don't necessarily NEED to click on an add for it to reach you. Otherwise tv ads would be worthless, cause NOONE clicks on those... cause... well... you can't.

     

    There is an entire business model on marketing showing that where you use advertising it works. You don't need to click things, you don't need to call a phone number... you just need to have had your eyes look at it.

     

    Everything else then boils down to capturing your attention, and making it stick in your mind... if the ads themselves suck, then that is not the fault of facebook (or any other advertising platform) but the fault of the advertiser.
    9 Aug 2013, 06:23 PM Reply Like
  • User 14797322
    , contributor
    Comment (1) | Send Message
     
    Yes, but exposure is exposure. How have TV adds worked for years? Plus, being able to hit your target audience is priceless. I think this is only the beginning of more success for FB.
    10 Aug 2013, 02:52 PM Reply Like
  • futuretrade
    , contributor
    Comments (746) | Send Message
     
    If they use video ads, they need to use humor in their ads. When people watch the super bowl, people anticipate these ads. they get a laugh out of them. Zuck needs to be wise with ad content, give people, especially young people, something they will remember! With this in mind people will tell others about these ads. IF THERE FUNNY.
    9 Aug 2013, 06:14 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4336) | Send Message
     
    If funny anywhere really! I wonder if our yankee correspondents ever saw the "Famous Grouse" whiskey ads that come on the tely each Xmas, in the UK? No message as such, but they make people smile. Do they make me buy more of the product? Nope; I've drunk Grouse because other connoisseurs of whiskey introduced me to it! That said, I now buy Long John (if anything) as it's a lovely blend, and significantly cheaper than FG, but if money were no object I'd go for stuff like Glen Morangey's 20 year old, and like the LJ, I've never seen it advertised anywhere. I suppose this says more about my personal indifference to ads, which I usually detest, but not so much if they are (or "they're") funny.
    10 Aug 2013, 06:07 AM Reply Like
  • futuretrade
    , contributor
    Comments (746) | Send Message
     
    Advertising doesn't pay, is that it? Why would advertisers spend so much money on them if they don't work?
    10 Aug 2013, 02:08 PM Reply Like
  • DianeLee
    , contributor
    Comments (356) | Send Message
     
    Agree re using humor in ads. Not a fan of Zuck, but there are a couple of good ideas. Plus...Facebook should have standards re acceptance of ads. There are some popular sites I absolutely refuse to go to simply because of their abundance of irritating "flash-bang" ads, and I'm probably one of multitudes. That would be a revenue drain, methinks.
    10 Aug 2013, 05:37 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4336) | Send Message
     
    It pays; all right, nut not in my case! Nobody likes them though, and there were no ad-blockers available for the tely...
    12 Aug 2013, 09:30 AM Reply Like
  • futuretrade
    , contributor
    Comments (746) | Send Message
     
    gwynfryn, I totally understand, and I can sympathize with you, unfortunately that's how they keep the lights on. All I'm trying to say is, a spoon full of sugar makes the medicine go down. (HUMOR BEING THE SUGAR) LOL......
    13 Aug 2013, 09:55 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4336) | Send Message
     
    Oh yes, it'd be a very different world without advertising. For some reason I can't get rid of the notification for your response (this being my third visit) but maybe posting will clear it. In the meantime, remember: nut not (lest ye be nutted...).
    14 Aug 2013, 05:56 AM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2652) | Send Message
     
    I guess people will have to learn how to disable video on their browsers
    9 Aug 2013, 06:50 PM Reply Like
  • futuretrade
    , contributor
    Comments (746) | Send Message
     
    I really don't like commercials per say, heaven knows I see enough of them watching television. Although I don't mind a funny ad. Especially, if it makes me "laugh". The strange thing is, if their really humorous I not only remember them, but I will tell others about them. And if their ads that I'm interested in and they should be, since FB knows so much about me.
    9 Aug 2013, 07:11 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4336) | Send Message
     
    I'm confused; do you mean "their" or "there"? More importantly, do they make you buy the product?
    10 Aug 2013, 06:10 AM Reply Like
  • futuretrade
    , contributor
    Comments (746) | Send Message
     
    gwynfryn- Sorry about my grammar. As to your question "Do they make you buy the product?" I'll answer that with another question. Do you think the super bowl commercials are effective? I do. ( Product Identification) more importantly people look foreword to watching them.
    10 Aug 2013, 11:40 AM Reply Like
  • SA_Member_8998191
    , contributor
    Comments (163) | Send Message
     
    The ads will "appear prominently" in news feeds, and users will be "exposed to one video advertiser per day."
    11 Aug 2013, 12:10 PM Reply Like
  • kidtronic
    , contributor
    Comments (2) | Send Message
     
    prepare yourself for the mass exodus from this social network now
    11 Aug 2013, 01:41 PM Reply Like
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