Thursday, March 14, 2013

How Will Video Ads Affect Facebook?

With video ads on the horizon, we can only wonder if this will be the end of Facebook. They have slowly rolled out additional ad products in attempt to monetize their free service. Mark Zuckerberg, Chairman and CEO, also expressed their eagerness to venture further into mobile during a recent earnings call:

…comScore put out a report saying that Facebook is now 23% of all time spent on apps in the U.S., and one of the next biggest apps is Instagram at 3%. So, put together, we’re now more than a quarter of the time spent in apps. Today, there’s no argument. Facebook is a mobile company. As I’ve said before, there are three main parts of our strategy; build the best mobile products, build the platform and services that leverage the social graph, and build a really strong monetization effort engine.

What does this all mean? In Facebook’s eyes, mobile is an untapped revenue opportunity. Now, monetization efforts will no longer focus solely on desktop ads.

With the advent of the “new” News Feed, the emphasis is clearly on visual content. According to Ad Age, the video ad product will be targeted to users’ News Feeds on desktop and mobile devices. The ads are expected to be capped at 15 seconds and will autoplay.

Are marketers excited? Absolutely. This opens up a whole world of opportunity for advertising to Facebook users. Are Facebook users excited? This one is up for discussion. Facebook has to be wary of introducing another new ad product for fears that it might be viewed as intrusive.

How do you feel Facebook users will respond to video ads?

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Image credit: birgerking

1 comments:

John molesworth said...

Very important and informative post you shared with us. I got some idea about facebook video from your post. A big thanks for sharing with us !!