The Internet is undeniably the place where the majority of media will be consumed in the near future, but one major drawback for most Web- based companies is the issue of monetization. While there are a plethora of successful Internet companies out there, they still don’t garner the kind of ad money that their analog counterparts, radio and television, accumulate. Most media companies are trying to figure out the old riddle of trading, ‘analog dollars for digital cents.’
Facebook, however, is looking to change that equation in their favor. The company is rumored to be launching a new 15-second video ad product that would not only compare to TV ads, but would also give potential advertisers access to Super Bowl size audiences on a regular basis. The ads are reported to cost about between $1-$2.5 million, which would be comparable to prices of their TV counterparts. According to huffingtonpost.com:
“If that price range is normally something you’d associate with the Super Bowl, you’re not far off: In 2013, the average 30-second Super Bowl ad fetched CBS $4 million.
“Facebook chief operating officer Sheryl Sandburg invited the comparison to television’s biggest sporting event when talking to investors in 2012. She boasted that Facebook’s viewership is three times that of the Super Bowl, “and it happens every day.” By inserting commercials into the Newsfeed, Facebook would be taking another step to capitalize on that audience.”
These reports come on the heels of the Publicis/Omnicom merger announcement of two of the largest ad companies in the world—which is designed to give the two ads giants better leverage to compete with the likes of a Facebook.
This new product does not come without possible drawbacks. As the video above suggests, in order for Facebook video ads to amass that kind of audience, the ads would have to be placed into users’ newsfeed with no ability for them to opt out. This could in turn hurt the user experience that most people value on Facebook. However, the video does point to the fact that user experience has always been a primary focus for the company from its inception, and they have full confidence in CEO Mark Zuckerberg’s ability to smoothly implement something like this.
So what do you think, will Facebook video ads in your newsfeed be fair or foul?