Facebook Video Ads Will Bring The Company $1 billion in 2014
Posted: August 9, 2013 by Alex Chan
According to Morgan Stanley, an American multinational financial services corporation, Facebook video ads will generate approximately $1 billion in 2014. This total is 1% of all TV ads spending in the US alone. According to the experts, the numbers will rise to an amazing $6.5 billion by 2010. For a service that has yet to be introduced to the social network, numbers are looking quite promising.
The analysts at Morgan Stanley believe that the video ads will start rolling out in the USA by the end of 2013. The Facebook Video Ad feature will remain exclusive to the US by the end of 2014. Europe will add the feature at the end of 2014, followed by Asia in 2015, and the rest world markets by the end of 2016.
The ads will appear in users' News Feed. They will auto-play without a sound, and when a user decides to turn on the volume, the ads will play from the start once again. On the other hand, all uninterested users can simply scroll past the ads in the News Feed. Based on the analysis, all ads will be limited to last up to 15 seconds while the price of each will be as low as $20 on a CPM basis.
Facebook has not released any official statement about the upcoming video ads on their social network.