Video Ads Coming To Newsfeed. How will Users Respond?

Facebook Video Ads

In attempt to gain a foothold in the video ad market, Facebook will begin incorporating video ads into the newsfeed as soon as July. The video ads will autoplay without sound in the newsfeed and will extend into the newsfeed itself. Users will also have the opportunity to listen to the ad with audio if they choose. Advertising giants like Cocoa Cola, Ford and American Express are rumored to be among the first to try the new video ads.  

Advertisers will be allotted 15 second video segments that will be shown exclusively (video ads from only one advertiser) to users in a given day. CPM, or cost per 1000 impressions is set to start in the 'low $20's' which is slightly lower than the '$29' CPM rate for TV commercials.

While there could be much to gain for Facebook and participating marketers, user experience is still a major concern. It will be interesting to see how users react to another ad source in their newsfeeds and what it will cost Facebook in the long run.    

Submitted by Erica Machin, Titan Growth

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