Recent reports from the valley are suggesting that Facebook might finally deploy video ads on its platform. These ad slots are rumored to be 15 seconds long and will show up in a user’s newsfeed. This rumor is not really new and I remember hearing something like this a few months back.
There are some additional details that the report from Bloomberg provides about the video ad rollout. Reportedly, Users will not see more than 3 of these video ads a day. The supposed cost of these video ad slots will range from $1 million to 2.5 million a day. Once again this depends on the targeting but the pricing suggests that Facebook will be seeing some very good revenue figures provided that the video ads get a favorable reception from users. Industry examples like Youtube suggests that this won’t probably be a big issue.
The resurgence of these rumors suggest that Facebook may be very close to launching the ad product. For this to happen, they must have signed advertising deals with agencies and brands already. Once video ads come on to Facebook, it will very well signify the beginning of the end of mainline television advertising and the shift of video advertising to social and most importantly online channels.
Source | Bloomberg