Love it or hate it, most of us spend at least some time on Facebook every day. Baby pictures, cat memes, political rants, you name it and we’ve seen it scrolling by. When Facebook went public last year the big question was how it would create revenue. The obvious answer was (and still is) advertising. Mark Zuckerberg and his team are sitting on a treasure trove of user data that would make the NSA blush. That data is extremely valuable to brands eager to sell their wares to the millions of people on Facebook.
As much as people complain about the ads to the side, the prime real estate on Facebook is your timeline. If you’ve been paying attention, you’ll have noticed more and more sponsored content popping up there. Especially on your mobile device. So what’s the big deal about these video ads?
This Business Insider article lays it out pretty well. Super Bowl ads are expensive because there’s a lot of people watching. The estimated cost of a new Facebook video ad (rumored to be limited to 15 seconds) is $1 million. If you believe Zuckerberg, 300 million people are on Facebook each day. For comparison, about 108.4 million people watched the Super Bowl in February. Unlike a Super Bowl ad, a Facebook ad will give marketers and brands metrics of who clicked through, who saw the ad, and which customers bought something. That data enables brands to figure out exactly what it is you want to buy rather than making a very educated guess.
The price tag is high, to begin with, for video ads on Facebook. Let’s assume for a moment that money isn’t an issue or the price drops to something reasonable that small businesses can afford.
Are video ads on Facebook something you would purchase for your business?
Are they something you’d be annoyed by as a user?
Would they make you rethink your presence on Facebook? Let’s talk in the comments.