Facebook Video Ads Set to Generate $1 Billion in 2014

Pete Schauer

Marketing Director

Just when you thought you were comfortable navigating Facebook, something new comes along. The social networking site is no stranger to innovation, and video ads are the latest addition. Facebook assures users that these short 15-second videos will take into account the seamless user-experience that is expected.

Still, why does Facebook feel the need to jump on the bandwagon of video ads in the first place? Well, let’s take a look.

Facebook reported $1.6 billion in ad revenue in Q2, a 61% increase from last year at this time. Since the company reported these numbers, Facebook shares have climbed 45%. Video ads are expected to bring in the big bucks; $1 billion in 2014 is predicted by Morgan Stanley. These are promising numbers for something that doesn’t even exist yet.

What to Expect from Facebook Video Ads

Facebook video ads are expected to be about 15-seconds in length and featured in the News Feeds up to three times a day. If the user isn’t interested in the video, they can simply scroll through the Feed, past the video. If they are interested, they can switch on the sound and watch the video from the beginning. Once the video slips off the screen, it stops so that it does not waste data or slow down the device. Testing is on mobile devices only.

Testing Phase of Videos to Launch First

Facebook video ads are still under wraps, and Facebook is only hinting at what may be to come. During the testing phase, only videos from individual accounts and the pages of musicians and bands will be shown on the News Feed. The goal is to see if marketers have a spot for advertising on Facebook, and if so, what the response will be. The social networking giant doesn’t want to compromise ad revenue and marketing opportunities for their 1+ billion users. The best way to go about this, then, is by launching short video ads that have a more personal touch.

Even though these changes are just being rolled out, you should still be planning for how you will take advantage of the opportunity when it arises. It’s believed that Facebook will charge $1 million and $2.4 million for a day’s distribution of the 15-second slot, so it won’t be cheap. Fortunately, videos have been shown to perform well across channels and have a positive effect on ROI and brand recognition.

About the Author: Pete Schauer

Born and raised at the Jersey Shore, Pete Schauer is the Marketing Director at SEMGeeks. He holds a M.A. in Digital Communications from William Paterson University and has 8+ years in the digital space with companies such as Bleacher Report and Social Media Today in addition to SEMGeeks. His background includes creative and professional writing as well as strategic digital marketing communications and management.

Talk With Our Team to learn more about this...

Comments?

We Love to Educate

Get our stellar design & marketing
tips sent right to your inbox.