Seeking Alpha

Facebook set to launch video ads

  • Facebook (FB) will reportedly announce the launch of video advertisements today and will start introducing them into users' newsfeeds on Thursday.
  • Among the first ads to play will be one for an upcoming Lions Gate (LGF) film called "Divergent."
  • It's not clear how much the commercials will cost, although a figure of $2M a day for all Facebook users aged 18-54 has been bandied about.
  • There's money to be made, especially with advertisers looking to use up unspent annual budgets, but a major question is whether there will be a user backlash - the ads will play automatically, which some Facebook members might find exceptionally annoying.
Comments (13)
  • Deja Vu
    , contributor
    Comments (1153) | Send Message
     
    that should work out just great when an ad starts playing when you check FB during that boring meeting....
    17 Dec 2013, 07:46 AM Reply Like
  • psychological-dividends
    , contributor
    Comments (572) | Send Message
     
    Agreed, it's a problem. Facebook for some is a remedy for boring classes, boring meetings, or boring presentations that can be consumed silently.

     

    I don't know how they work around that without driving people away.
    17 Dec 2013, 01:00 PM Reply Like
  • Magarv
    , contributor
    Comments (154) | Send Message
     
    Ah yes, the press will at once get busy. A reporter for the NYTimes will find a pimply 19-year-old youth in Punxsutawney, Pennsylvania who will complain about the ad.

     

    Which will become the major story of the day causing FB to fall at least 3%.

     

    (Personally, I think the ads will be a hit!)
    17 Dec 2013, 07:53 AM Reply Like
  • James Duade
    , contributor
    Comments (291) | Send Message
     
    $2 million is probably what it would cost for a 30 second spot at the Super Bowl...it would be an interesting study to see what has more impact. Could be a big Hit if the Advertisers tailor the commercials to the audience and the medium.

     

    No position on Facebook.
    17 Dec 2013, 08:57 AM Reply Like
  • stealthology
    , contributor
    Comments (308) | Send Message
     
    I don't see how it couldn't be a big hit. All of the ads will be entertainment related. 15 second max, an if they allow skipping sometimes even better. Personally, I think this will be pretty big. I just wonder how much of its success is already banked into the share price.
    17 Dec 2013, 10:25 AM Reply Like
  • SoldHigh
    , contributor
    Comments (999) | Send Message
     
    And with video ads, FB users will once again be more annoyed but put up with FB without the comprehension that when the product seems free, it is because YOU are the product being sold and the currency is your time and privacy.
    17 Dec 2013, 10:14 AM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (686) | Send Message
     
    Sounds like Youtube...
    17 Dec 2013, 03:11 PM Reply Like
  • BuyToSell
    , contributor
    Comments (215) | Send Message
     
    A lot of people are going to be unhappy if their data plans are hit hard by unwanted videos playing ...
    17 Dec 2013, 11:18 AM Reply Like
  • financeminister
    , contributor
    Comments (613) | Send Message
     
    well, if this is going to use bandwidth without my permission, I will stop using bookface mobile or try to find a backdoor to stop this misuse of bandwidth. If they are smart which I'm sure they are, they will enforce this for desktops but not mobile. I already see them playing videos by default on bookface.
    17 Dec 2013, 11:27 AM Reply Like
  • BuyToSell
    , contributor
    Comments (215) | Send Message
     
    in the past week, i've started seeing non-ad videos (e.g. videos from friends) playing automatically with the sound off. now, i was on a wifi at the time i noticed it, so i didn't mind as much. but they need to have some kind of a setting so you can control whether or not it uses your data without your permission, otherwise there's going to be a huuuge backlash.
    17 Dec 2013, 11:30 AM Reply Like
  • gwynfryn
    , contributor
    Comments (3886) | Send Message
     
    And lots of ad blockers!
    17 Dec 2013, 12:08 PM Reply Like
  • Kamil Kolacek
    , contributor
    Comments (736) | Send Message
     
    Despite what many think, FB is concerned about user annoyance. If there is a big backlash against these automatic ads and it does slow down people scrolls in their feeds they will like create a skip, pause, stop, opt out or eliminate button. Fb is walking that tight line of needing to monetize through engaging ads and not annoying their users to much with unwanted content. I am confident that through trial-and-error they will find the right mix between the two and ultimately be successful.
    17 Dec 2013, 02:57 PM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
     
    $2 million from Lions Gate! I doubt it, not from them.
    17 Dec 2013, 10:57 PM Reply Like
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