Social medias are becoming one of the favourite destinations for advertisers to market their products, as platforms like Facebook and Twitter are a daily destination of millions of users.
Facebook, in an effort to have an extra share of TV marketing budgets set by companies and dominate the advertising world – is planning to sell TV style advertisements on its site for as much as $2.5 million a day, reports Bloomberg. This new ad format will however, be visible on a user’s home page or news feed. Users can expect to see 15-second video ads on their Facebook screens later this year.
The commercials will initially be sold on a full-day basis where the users will not have to see the spot more than three times in a single day. The advertisers can target users on the basis of their age and gender. Depending on the size of audience an advertiser plans to reach, the ads will range in price from $1 million to about $2.5 million a day.
The move will undoubtedly help Facebook to capture the advertising dollars that marketers allocate to their TV spending budget – in addition to the ads it already sells, though the company might need to reconsider the prices it has initially declared – just like Apple did. Apple started off with its iAd mobile system ads from $1 million per ad, which eventually ended up in further price cuts a couple of times.
With rumors about Facebook introducing video ads are around the medias since last year, another publication earlier stated that the company has already been reaching out to ad agencies about the product, though the ads won’t appear until 2014.
Where the matter of how and when will Facebook introduce such ads on its platform is building up curiosity among its users and advertisers, Mark Zukerberg has given no sign of any such activity to be introduced on its platform.
The company reportedly has also seen an increase of 53% in its revenues in its Q2 earnings of 2013, clocking a total of $1.81 billion from $1.18 billion in the second quarter of 2012, with advertisements being a major revenue source – representing 88% of the company’s total revenue.
Moreover, if the network does introduce the feature, it will definitely offer marketers a powerful option to tap Facebook’s 1.1 billion users, while putting broadcasters/TV seller’s business in jeopardy. As if Facebook offers audiences that are larger than network TV, and with better chances of ROI, why would anyone spend on TV instead when they can run a similar ad on Facebook?