Facebook seems to be on a roller coster ride right now. Each day you hear a new update been developed or released on Facebook. This year it started off with the Graph Search then came the latest newsfeed layout which was followed by a new timeline layout. Besides updating Facebook on the web, the company also entered the App industry by launching Facebook Home launcher for Android phones recently. If this was not enough, Facebook has also started rolling out Priority Messaging feature for its users which is a paid messaging service.
There is already a buzz going around the social media circle regarding this frequent updates by Facebook which are not readily welcomed by its users. But Facebook doesn’t just stop here. To add it to the already worse scenario for the users, Facebook is now coming up with video ads to add a new revenue channel for the success of the company. Expected to launch this summer, AdAge has revealed that Facebook is currently in talks with various agencies to secure its first video ad partners ahead of a June/July launch, with a view to displaying three video advertisements in users’ News Feeds each day.
Further AdAge reports that Facebook is all set to sell four daily video ad slots where the advertisers can choose from the newly split demographics which is classified into four categories: women over 30, women under 30, men over 30 and men under 30. The cost of one ad unit is set around $ 1 million which would make Facebook richer by $4 million a day if all of its advertising inventory is purchased which is very likely to happen.
Last year, we covered the news where Facebook was making its advancements to sell its new ad units on both web and in its mobile apps. As per the company sources, Facebook would be capping autoplay video ads at 15 seconds, expanding from the main News Feed to cover the left and right columns on the desktop when an ad is played. However, now that Facebook has begun rolling out its new redesigned feed and is working out ways to display video ads on mobile devices, this could be set to change.
Now offering video ad units, Facebook is directly targeting the major TV ad budgets but now only time will tell if the agencies will bite at the current price tag Facebook is offering those ads. If Facebook is able to sell those ads or not, it should never forget that its a power social network because of its user base. So if it is planning for this new video ads feature then it must make sure that doesn’t annoy its users or there would be a certain backlash from its users.