Brace yourself for more ads on Facebook. Bloomberg News reports the social networking giant is set to launch 15-second video ads that will play directly in your Newsfeed. The video ads are likely to be available by end of this year.
The report further says the company will charge between $1 million to about $2.5 million per day for each ad, which will depend on the number of people/users are being targeted. Bloomberg's latest report is in line with recent rumours that the social networking giant will short video clips will play automatically, but will have no audio.
Bloomberg News points out the new video ads will have the same length as Facebook's Instagram videos, which recently added to the company's photo-sharing service last month. We can expect the format of the video ads to be similar with Instagram videos.
According to rumours, Facebook has already entered into partnership with brands such as Coca Cola, Ford, and American Express for auto-play video ads.
Facebook's new video ads aren't unprecedented, considering rival sites are already using the concept to generate revenues. Auto-play ads are already seen on YouTube for quite sometime. It's notable YouTube recently launched paid subscription channels in a bid to curate venue for commercials.
Facebook is also said to be eyeing users who actively check for the updates, especially during the prime-time hours coveted by TV ads.
“Every night, 88 million to 100 million people are actively using Facebook during prime-time TV hours in the United States alone,” Chief Operating Officer Sheryl Sandberg said last week on a conference call about second-quarter results.
Twitter has actively built partnerships with TV networks in the US. The micro-blogging site allows the TV networks to stream videos on the site, splitting the resulting ad revenue.
What do you think about auto-play video ads on your Facebook Newsfeed? Let us know in the comments section below: