Advertising on Facebook might become a little more costly as its being reported the social network will charge US$ 1 million for a single video advertisement.
Paying to Promote
With video advertising becoming a formidable tool, there have been many social sites, like LinkedIn who have started offering video advertising options. Over the last few months there have been hints that Facebook was working on its own video platform, but had yet to make an official announcement. According to reports, this summer that will change.
In an initial report from AdAge, it was said that Facebook has plans to introduce an auto-play video advertising tool, but unlike many other forms of advertising this won’t come cheap. Facebook is expected to charge US$ 1 million per ad.
"Assuming four daily advertisers will meet Facebook's asking price -- a big, and unlikely, if -- it would be earning more than $4 million per day from the ads,” said Ad Age’s Cotton Delo.
According to Delo, daily ad “slots” are currently being sold in an “upfront marketplace". These slots each target a certain demographic such as women over 30 and men under 30. The ads are expected to be in a 15 second long, auto-play format that appears in a pop-out video player of a person’s news feed. The service, which is expected to be a way to tap into an advertising department’s TV budget, is said to be capped at three videos per day, so that users aren't overwhelmed with content.
A Mixed Reaction
Despite not being officially confirmed, video advertising could be a beneficial move for the company.
In the intervening year, Facebook's major ad product launches have been less about integrating its social graph and more about taking advantage of its massive scale through familiar web advertising models," said Delo. “The coming video ads would seem to follow that trend, since they'll be shown to all users who fit a broad demographic profile, not because of the social context of a Facebook friendship with someone who's "liked" the brand advertiser or movie studio showing the ad.”
Others, though are worried that the suggested video format might be problematic for some users.
Video ads are a calculated risk for the company, but one that clearly could pay off considering how much money Facebook stands to make,” said Frances Bea of Digital Trends. “It just has to be sure that this won’t further alienate the platform from its users."
Still for others, it’s the price that worries them versus the service itself.
Granted, Facebook says it won't accept a dollar less than that asking price, which is steep even in a market where 30-second Super Bowl ads fetch $4 million apiece," said Jason Notte of MSN Money.
Other Video Options
Facebook isn't the only social site to offer video advertising options. As was mentioned LinkedIn now offers a video platform that includes integration with YouTube and 300x250 advertisement spaces, a format that mirrors its text and photo ads. Twitter has also recently introduced micro-video app, Vine that, if used properly, could be a good advertising tool for companies looking to grab a viewer’s attention.
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