Facebook finally launches news feed video ads

Facebook's (FB -2.8%) news feed video ads, delayed more than once due to user experience concerns, are 15 seconds long (on par with Instagram's video ads) and begin automatically playing without sound. Clicking/tapping on an ad leads it to expand and sound to begin.

Ad exec Brian Boland says Facebook is testing features that allow marketers to decide at what time of day an ad appears, how often it appears, and whom it reaches. Facebook is working with video ad analytics firm Ace Metrix to weed out low-quality ads.

Past reports have mentioned Facebook is looking to charge anywhere from $1M-$2.5M/day for video ads, depending on reach. At those prices, showing the company's 757M DAUs an average of even 2-3 video ads/day could yield a $1B+/year revenue opportunity.

Facebook, Twitter, YouTube, and others are all moving aggressively to offer targeted video ad products to brand marketers, and in doing so take a bite out of a TV ad market expected to be worth $67B in the U.S. alone.

Facebook launched a video app install ad product last fall.

Earlier: Facebook lower; OTR's checks show moderating ad growth

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Comments (14)
  • Topcat
    , contributor
    Comments (581) | Send Message
    Already young people are said to be exiting FB, mainly because too many adults and parents are now on it :)..and it is not leading edge...video advertisements will drive many away, including me, if there is no way to turn it off.
    13 Mar 2014, 03:36 PM Reply Like
  • gwynfryn
    , contributor
    Comments (6504) | Send Message
    Somebody is sure to come up with an ad blocker, but I doubt it will affect share price...
    14 Mar 2014, 12:20 PM Reply Like
  • caupachow
    , contributor
    Comments (527) | Send Message
    I'm with Topcat, the still ads they have now have driven many away.
    13 Mar 2014, 04:56 PM Reply Like
  • fafatooey
    , contributor
    Comments (435) | Send Message
    I like the new ads. No need to click on them. If you have to have ads, this is the way. Nobody is leaving Crackbook in droves.
    13 Mar 2014, 05:54 PM Reply Like
  • Ol Blue Eyes
    , contributor
    Comments (1827) | Send Message
    Sorry, but no one is going to give you social media or messaging for free. It's either ads or subscriptions.
    13 Mar 2014, 08:57 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13557) | Send Message
    Yay, their ads just got that much more annoying and are liable to get you in trouble at work. Anyways, I strongly recommend businesses ban Facebook except for marketing people or sales dealing with social media. A company with its employees on Facebook is a unproductive one unless it happens to be Facebook or a Facebook service or content provider.
    14 Mar 2014, 02:08 AM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
    @Moon, a more relevant post would have been for employers to ban the use of cell phones at work.
    Productivity would double immediately when people can't text, google, FB,
    or yap on their phones during the work day / night.
    14 Mar 2014, 10:31 AM Reply Like
  • gwynfryn
    , contributor
    Comments (6504) | Send Message
    Certainly, 22, but what would the poor managers do with their time? You can only tolerate so much time in unproductive "blame sharing" meetings, you know.
    14 Mar 2014, 12:23 PM Reply Like
  • masterconi
    , contributor
    Comments (6) | Send Message
    if there is no possibility of turning it off, I think that people will finally abandon the ship...
    14 Mar 2014, 01:00 PM Reply Like
  • James Sands
    , contributor
    Comments (2728) | Send Message
    $3 billion in free cash flow and counting.
    14 Mar 2014, 04:33 PM Reply Like
  • rstran
    , contributor
    Comments (152) | Send Message
    Young people will continue to abandon. Mature people, who are the actual ones that make the purchases and spend the money will make this world go round.
    15 Mar 2014, 03:36 PM Reply Like
  • takeanaotherlook3
    , contributor
    Comments (39) | Send Message
    I saw the stock price DROP Friday so fast that I wonder did Mgmt over do it this time?
    16 Mar 2014, 11:20 AM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
    Over do what?
    16 Mar 2014, 12:39 PM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
    On friday:


    GOOG dropped 1.37%
    TWTR dropped 3.08%
    AAPL dropped 1.12%
    LNKD dropped .54%
    TSLA dropped 2.87%
    FB dropped 1.61%


    The NAS dropped .35%


    FB dropped on considerably less than it's ADV so I wouldn't read anything more
    into it than some profit taking on a down market day.


    Just my opinion.
    16 Mar 2014, 12:43 PM Reply Like
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