Not too long ago, I gave an interview about the possible effects of Facebook placing video ads in user newsfeeds. At the time, the idea was just a far off rumor, but now the rumor seems to be getting more real. According to Ad Age’s article released a few hours ago, Facebook is preparing to launch a high impact video ad program this summer. The ads would be placed in the real estate on the left and right side of the newsfeed. Facebook is looking to serve up four daily summer “slots” at up to $1 million a piece. These ads will target four different broad audiences: women over 30, women under 30, men over 30, and men over 30. Just in case you are contemplating how you will conduct your Facebook stalking with a bombardment of 15 second video ads during this summer, have no fear, the frequency will be capped so you won’t see more than 3 a day.
From a business aspect, what is more interesting is that fact that Facebook is supposedly looking for 7 figure commitments from agencies and advertisers alike. To clarify, Facebook is looking to generate more than $4 million per day from four advertisers. This is a large leap for Facebook as they continue their hunt for massive profits and to please the shareholders.
As for the user experience, we really won’t know how it will affect their moods as they check their feeds and nonfictions multiple times per day. Will the new video ad layouts, that look very similar to a homepage takeover, create too much disruption, or will users put up with it? Here is a possible example of how the ads will look, provided by Engadget.
Intergalactic Ruler for the day