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?
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