Expected to launch in the summer, Facebook's new video ad units may prove to be a revenue success for the company, but they may also become another nuisance for users. According to AdAge, Facebook is currently in talks with various agencies to secure its first video ad partners ahead of a June/July launch, with a view to displaying three video advertisements in users' News Feeds each day.
No user will see more than three video ads per day
AdAge reports that Facebook is currently selling four daily video ad slots, splitting demographics into four categories: women over 30, women under 30, men over 30, and men under 30. The ads are reportedly priced at around $1 million, suggesting that Facebook could make as much as $4 million a day — if all of its advertising inventory is purchased.
Last year, we reported that Facebook was looking to sell its new ad units on both the web and in its mobile apps. The company is said to be capping video autoplay ads at 15 seconds, expanding from the main News Feed to cover the left and right columns on the desktop when an ad is played. However, now that Facebook has begun rolling out its new redesigned feed and is working out ways to display video ads on mobile devices, this could be set to change. By offering video ad units, Facebook will attempt to capture the major TV ad budgets but it remains to be seen if agencies will bite at the current price tag. If they do, it's almost certain that a user backlash will follow.