Facebook Video Ads Coming to Your News Feed Thursday

by Christopher Freeburn | December 17, 2013 9:53 am

Facebook Video Ads Coming to Your News Feed Thursday

Starting this week Facebook (FB[1]) users will see something new: video ads[2].

facebook screen 630 300x200 Facebook Video Ads Coming to Your News Feed Thursday[3]
Source: Flickr[4]

On Thursday, Facebook video ads will be posted on the social media giant’s mobile and web platforms. Among the first Facebook video ads will be a spot from Lionsgate (LGF[5]) promoting its new Divergent movie, the Wall Street Journal notes.

Facebook video ads will be positioned in FB user feeds. The ads will run without users having to activate them, but will not feature sound during automatic play.

TV ads generate annual revenue of $66.4 billion. With its Facebook video ads, the social media platform hopes to claim some of those ad dollars. The pricing of Facebook video ads has not been disclosed, but advertisers are expected to pay premium rates.

Facebook has been reportedly working on introducing Facebook video ads since the summer. A number of potential advertisers had prepared video ads, but FB opted to wait after discovering technical issues that made uploading the Facebook video ads too slow.

The company is proceeding carefully in rolling out Facebook video ads so as not to annoy customers. Testing of Facebook video ads began last week. The company says smartphones will download ads while connected to the Internet via WiFi, so as not to risk consumer ire by eating up pricey cellular data.

Share of FB stock climbed more than 1% in Tuesday morning trading.

Endnotes:
  1. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  2. video ads: http://online.wsj.com/news/articles/SB10001424052702304403804579263371125671670
  3. [Image]: http://investorplace.com/wp-content/uploads/2011/12/facebook-screen-630.jpg
  4. Flickr: http://www.flickr.com/photos/fbouly/
  5. LGF: http://studio-5.financialcontent.com/investplace/quote?Symbol=LGF

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