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Facebook to Include Video Ads in Newsfeeds in July

Facebook is adding video format to its advertising platform. The video ads are reported to appear in the newsfeeds in July, marking the social media giant’s entrance to the growing online video advertising market. 


Pic.: Facebook video ads,

Technically, Facebook video ads won’t be different from other ad clips. They will start playing automatically without any sound, then a user will be able to turn on the audio. Once it is activated, the advert restarts from the beginning. According to FT, for the trial ads Facebook will collaborate with its major advertisers that include Unilever, Nestlé, Ford, Diageo, American Express and Coca-Cola. The social network will charge “low $20s” per thousand video views, even when users have not turned on the sound.

The maximum length of the clip will be 15 seconds. The platform will be showing ads from just one advertiser in any one day to individual users, which will allow to minimize the annoyance and ensure maximum results for the marketer.

Digital video ads spending make up only a small share in the $64.5bn market for TV ads in the US. Still, according to eMarketer’s forecast, it is sure to reach $4.1bn in the US in 2013, up 41.4 percent from 2012. It is expected that the Facebook video ads could generate up to $1.5m per day, growing into $4m a day by the end of the year and resulting in $500m to $1.4bn new revenue.