Facebook to launch 15-second ad video for US$2.5 million each day

By IVCPOST Staff Reporter

Aug 03, 2013 11:47 AM EDT

Facebook planned to launch video ads into the news feeds of users that would last for 15 seconds. The new move that would generate more revenue for advertisers would cost US$2.5 million per day.

The video's 15-second length would match the format of Facebook-acquired Instagram's latest video offering.  It aimed to be long enough for advertisers so that Facebook could charge them with the television-style premium, but not too disturbing for its users. According to eMarketer, the budget for digital video advertisements in the US was projected to increase exponentially from US$2.93 billion in 2012 to US$9 billion in 2017.

ZenithOptimedia said that around US$200 billion would be spent internationally on commercials for this year alone. Advertisers were expected to spend US$101 billion on online advertisements. Facebook was able to take only 5% of the global digital advertisement earnings while Google took 33% of it. Hence, the social network planned to court the television advertisers so that it could boost its earnings from advertisements. 

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