Facebook Video Ads Could Appear In Newsfeeds As Soon As July

The online battle for TV ad dollars continues to heat up. Yahoo, AOL, YouTube among others, and now Facebook are all aiming their sites on the burgeoning online video ad market and a share of TV’s outsized ad budgets. As first reported in December, Facebook has been shopping new video ad units to agencies. Now, it appears […]

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The online battle for TV ad dollars continues to heat up. Yahoo, AOL, YouTube among others, and now Facebook are all aiming their sites on the burgeoning online video ad market and a share of TV’s outsized ad budgets. As first reported in December, Facebook has been shopping new video ad units to agencies.

Now, it appears Facebook will be bringing video ads to users’ newsfeeds in July, according to The Financial Times.

The video ads will appear in newsfeeds on desktop computers as well tablets and smartphones and will be set to autoplay on mute. If a user clicks on a video ad, it will restart with sound. Facebook is reportedly seeking CPMs in the “low $20s”, a bit lower than the average $29 CPM of broadcast television according to MagnaGlobal.

Among the concerns from analysts and others are how users will react to having yet another form of advertising in their newsfeeds, as well as how the load time of video will affect user experience on mobile devices.

Performance on mobile is of particular concern for Facebook as it works to allay investor worries that it has not moved quickly enough to monetize mobile traffic. The company showed a 54% increase year-over-year in mobile users in its Q1 2013 earnings, and mobile advertising accounted for roughly 30% of advertising revenue during the quarter. Yet, the company’s stock price has been hovering under $30 since February.

According to people familiar with the plans, the new online video ads could yield up to $1.5 million in new revenue per day based on initial inventory levels. Big brands including Ford, Coca Cola and American Express are expected to participate in the early trials.

It is unclear if Facebook is also approaching TV broadcasters and film studios to advertise their shows and films with the new ads, but based on recent studies, it would seem the social TV angle would be a sensible pitch.


Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.


About the author

Ginny Marvin
Contributor
Ginny Marvin was formerly Third Door Media’s Editor-in-Chief, running the day-to-day editorial operations across all publications and overseeing paid media coverage. Ginny Marvin wrote about paid digital advertising and analytics news and trends for Search Engine Land, Marketing Land and MarTech Today. With more than 15 years of marketing experience, Ginny has held both in-house and agency management positions. She can be found on Twitter as @ginnymarvin.

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